US dubbed 'new emerging market' as investors snap up shares

Leading fund managers are favouring US equities over markets including China and Europe as the appeal of owning dollar assets helps spark a shift into the world's largest economy.

Managers running global funds – including Bill McQuaker at Henderson Global Investors and Neptune’s Robin Geffen – have been increasing their allocation to US equities despite cheaper opportunities elsewhere. The move comes following a strong start to 2012 for the S&P 500, which has shot up since the start of the year, gaining 4.36% alone in January. This was the highest January return since 1997 when it rose 6.13%, according to S&P Indices. There was also a rise for the Dow Jones Industrial Average, which advanced 4.25% over the same period, leaving both within a whisker of 52-week...