End of QE2 will be good entry point for investors

ON NORTH AMERICA

Martin Currie's Tom Walker discusses how the end of the current quantitative easing programme will impact the economy.

In dollar terms, US markets have risen almost 9% so far this year. As we move into the summer, there is likely to be a consolidation phase, as QE2 comes to an end and thoughts turn to America's fiscal deficit. That will not necessarily entail a major pull-back, but will mean a period of digestion. And that will be an excellent entry point for investors. The US economy continues to improve. Manufacturing has bounced back, so may not rise from here, but employment looks set to improve slowly. The Fed appears confident enough to withdraw QE, with no sign of ‘QE3', suggesting it has done its...