Economy is further ahead on recovery than most

Equities easily surpassed consensus expectations in 2009 with the S&P 500 up some 67% from its March lows.

By the beginning of 2010, a correction was arguably overdue and the combination of political and fiscal concerns provided the catalyst. This was, however, no reflection of America’s corporate health. The US economy is further ahead in the recovery cycle than most, with Q4 2009 growth at over 5%, compared to just 0.1% in the UK. This should continue. Government stimulus appears to be working with more to come if needed. There are headwinds, of course, notably weak consumer balance sheets, the impact of the withdrawal of QE and similar support, and the consequences of banking regulation. ...