Investors remain confident despite mixed data

ON THE US

American Century Investments' David Hollond says there are signs of improvement in the US economy.

US stocks finished 2010 on an upswing, advancing in Q4 and posting double-digit gains for the second consecutive quarter. Signs of improvement in the economy, helped by QE measures and Congress’s 11th-hour extension of expiring federal tax breaks, sparked optimism among investors and provided a boost to the equity market that has carried over into 2011. Overall, small- and mid-cap stocks led the market’s advance by a wide margin. Despite that confidence, economic data remains mixed. Unemployment finished December at 9.4%. However, manufacturing was strong, and retail sales and consume...