Increased cash exposure captures dislocations

U.S.

The US economy has certainly stabilised and continues to improve.

Recent data, in our analysis, suggest industrial activity has increased dramatically over the past six to nine months, housing prices have stabilised to a large degree, and the US consumer has been much more resilient than we would have imagined. Additionally, businesses have continued to increase their capital expenditure budgets and, importantly, the senior business leaders we meet exhibit much more confidence in their outlook. On the negative side, some macro issues concern us in the short to intermediate term. We are monitoring the sovereign debt situation very closely. Additional...