Growth in US is set to outpace UK, eurozone and Japan

ON THE US

Threadneedle's Richard Wilson says despite headwinds there are positive implications for US equities in 2011.

Despite well-documented headwinds facing the US economy, we expect growth in the US to outpace the UK, eurozone and Japan in 2011. The rise in US equity and bond markets since the depths of the financial crisis has boosted sentiment among US companies and private individuals, and we expect a pick-up in corporate capital expenditure and consumer spending. In the case of the latter, the recent extension of the Bush-era tax cuts is welcome, since consumers would have been faced with punitive rises in cash taxes had the legislation expired at the end of this month. US equities had alre...