QE2 has achieved its goals despite criticism

ON NORTH AMERICA

Neptune's Felix Wintle reports on the state of the US economy and whether another bout of QE is likely.

The strength of the corporate sector has been an integral part of both the economic and equity market recovery to date. The rebound in corporate profits has been faster than anticipated and quarterly earnings have continued to beat analysts’ expectations. Companies are now very well capitalised and are able to utilise their balance sheet strength to enhance shareholder value through, for example, M&A, share buybacks and special dividends. Corporates’ cash is also likely to be deployed in ways that support continued economic recovery. Although companies are in rude health, questions re...