Improving US economy a catalyst for bull forecasts

ON NORTH AMERICA

Russell Investments' John Velis says US markets look set to improve further.

The US economy is improving, and forecasters are revising their outlook upwards. As long as these upward revisions continue, the markets should improve along with them. Corporate balance sheets in the US and across the world are in very strong shape. Corporations will seek to return this cash to shareholders, either by increasing (or in some cases restoring) dividends, buying back stock, or pursuing M&A activity. The latter is showing signs of life. Well into fourth quarter earnings season in the US, far more companies are beating forecasts than those which are falling short. Earnings...