The US economy faces some potentially thorny challenges, such as oil and inflationary ‘shocks’ as it emerges into the ‘new normal’. However, some fund managers are optimistic about its ability to cope, and are looking to increase their exposure to US equities.
Optimism about US economic performance is partly based on the volume of savings built up and debt paid down by Americans during lockdown. Also, the impact of oil-price spikes in the medium term is anticipated to be less than previously.
The forecast for smaller businesses struggling with the inflationary spike is less than rosy, however, while those at the larger end of the corporate scale may simply absorb the costs and put up prices.
This article examines the outlook for the US equity markets, and is worth 30 minutes of CPD.
