Long-term perspective needed as US economy picks up pace

ON THE US

Charles Schwab's Kully Samra says evidence indicates a strengthening US economy that should help support stock market performance over this next year.

As 2010 drew to a close, we saw market volatility in reaction to ongoing European debt concerns, China’s monetary tightening, North Korea’s attack on its southern neighbour, better US economic news and continued chatter about the merits of QE2. Unfortunately, it can be difficult to determine what is worth paying attention to as a longer-term barometer and what is short-term noise. Although we recognise a pullback in the US was overdue at the end of 2010, we remain optimistic for the market’s prospects in 2011. Confidence among consumers and businesses is growing, which should lead to hig...