Severity of economic weakness wrong-foots US equity stalwarts

Floundering economic growth and political stalemate have rocked investors in the IMA North America sector

The extent of US economic weakness has wrong-footed stalwarts of the North American equity sector. At the start of the year, a number of signs pointed to an improvement in economic growth – notably companies had started spending again, which should have created a virtuous circle of expanding employment and economic growth. This led some of the sector’s top performers to a cyclical stance. The reality has been very different. Economic growth has been hit by the earthquake and tsunami in Japan and political stalemate over the budget deficit has shaken faith in US stability. Managers who ha...