Ask The Experts: Housing to Provide Strong Boost to US Economy
Stephanie Sutton, Product Manager for US & Global Equities at Fidelity Worldwide Investment, shares with Fundsupermart her outlook for the US equity market.
What is the outlook for US equities for the rest of the year?
- Though US equity markets have seen strong rallies since the start of the year, further upside is expected due to strong positive trends
- Corporations are in good health with strong balance sheets
- Expects more dividends to be paid out, buy backs, and some merger and acquisition activities
What will be the major drivers of performance of US equities in 2012?
- Bottoming of housing market
- Improving labour market
- Stronger retail sales
Conversely, are there any indicators or trends you are watching out for which may detract from performance in the US equity markets?
- High level of indebtedness of government
- European sovereign debt crisis
What are your views with regards to the much talked about housing sector, and do you think it has finally hit a bottom?
- Housing has hit a bottom and the team has been positive on the housing market since end 2011
- Housing starts have been depressed and have picked up since
- Housing market will provide a strong boost to the economy
Do you foresee the November presidential elections having an impact on the US equity markets?
- Some volatility expected during major events leading up to the elections
- A Republican win will be extremely positive for the market due to strong pro-growth policies
- A win for the Democrats will also be positive since markets will know what to expect
||: Ask The Experts: Housing to Provide Strong Boost to US Economy