Martin Currie's Walker: US market at risk of 10% correction

The US stock market could correct by up to 10% in the summer, according to Tom Walker, manager of the £707m Martin Currie North American fund.

His warning comes as the Federal Reserve last week downgraded its predictions for US growth and held rates at a historic low to support the ailing economy. Fed chairman Ben Bernanke also said inflation expectations are higher than expected, at 2.1%-2.8% for the year, up from 1.3%-1.7%. Walker said: “It is possible the market will pull back 10% over the summer months. Valuations are still extremely attractive, interest rates are very low and earnings are growing. The valuations of many companies are at a considerable discount to their long-term history.” Walker is hedging against i...