Columbia Threadneedle global CIO: Investors too optimistic on US recovery

Stuck in 2% growth phase

Investors need to temper their enthusiasm about the strength of the US recovery, as the world's biggest economy will continue to be "firmly stuck" in a 2% growth phase, according to Columbia Threadneedle's Colin Moore.

The group's global CIO said the US economy will not be able to sustain an accelerated growth path in the coming years, despite the US Commerce Department publishing a significant upward revision for second quarter growth of 3.7% (up from 2.3%). Recovery expectations have driven investors into US equities over the past 18 months, with the S&P 500 reaching an all-time high to close above 2,100 in February. Although markets have since fallen back following August's sell-off, the index rebounded to around 1,950 after Federal Reserve officials put rates on hold last month but said the US e...