JPM's Hart: Seven reasons the US is not facing another 2008

US IS NOT FACING ANOTHER 2008

Clare Hart, co-manager of the £373m J.P. Morgan US Equity Income fund, gives seven reasons why the US is not facing a second credit crisis.

The odds of a recession in the US have increased in the last few weeks but I do not think we are heading for a recession. The problems in the US are well understood and policymakers are looking for solutions. Federal Reserve and ECB policy is less experimental, and the dividend yield on the S&P 500 is greater than the yield on a 10-year treasury for the first time since 1962. Interbank lending is not showing signs of stress, and corporate balance sheets are strong. US equities look attractive relative to other asset classes, and our bottom-up estimates suggest earnings are sustaina...