Outlook positive for large caps despite house market volatility

Concerns about the US housing market have continued to make the region look weak but there is more going on in the Dow Jones and S&P 500 than the fluctuations and volatility seen in recent weeks. Like most major markets, following a period where mid and smaller sized companies have dominated the performance of equities markets, large caps are starting to lead the way and managers are looking upon them favourably. The added volatility brought on by initial concern with regards to the US housing and prime lending market, followed by a drop in China's Shanghai market in late February, have d...