Corporates in rude health despite global obstacles

ON NORTH AMERICA

Martin Currie's Tom Walker says managements are talking about increasing dividends, undertaking buybacks and engaging in M&A.

In most respects, the outlook for US equities in 2011 is much as it was at the start of the year. Economic fundamentals are improving, and earnings look set to grow steadily. The fact the market has had two good years in 2008 and 2009 may constrain returns, but the outlook is more benign than it was in either of those years. What has changed in Q1, however, is the geopolitical environment in North Africa and the Middle East. The problems in Libya are likely to be protracted. Although protests in other countries continue, concerns that unrest in Saudi Arabia could disrupt the flow of oil ...