Currency volatility and interventions could disrupt confidence

ON NORTH AMERICA

Russell Investments' John Velis on the currency war gripping the world

Fears of a double-dip that predominated in August and early September have been firmly laid to rest for now. The US economy will continue to grow, albeit at a lacklustre pace. The market’s recent rally  was initially touched off by the “rolling away” of the dreaded double-dip scenario. The Fed is expected to enact additional monetary stimulus shortly. QE2 is the economic equivalent of a cure for a serious malady and the fact this seems to be on its way has led to rallies across the risk asset spectrum. Valuations in the US market are unrestrictive, and early indications are earnings g...