US results defy expectations

Rising equities, improving economic newsflow and corporate earnings put sector in good position

US equities have risen sharply since the March lows, supported by improving economic newsflow and corporate earnings results that have beaten expectations. The US economy returned to growth of 3.5% in the last quarter after a year-long contraction, with the S&P 500 index climbing 17.4% over the year to 9 November. Although the weakness of the dollar has eroded some of those gains for UK investors, funds in the IMA North America sector have participated in the rally. Over one year, the sector has climbed 15.5%, according to Morningstar. Among the US portfolios featured in Investment...