Is it time to look across the Pond?

Should investors hold an overweight or underweight position in the US equity market? There are many concerns, but we should recall the US stock market remains the world’s largest: the capitalisation of the Russell 3,000 index, for example, is about $13trn. And despite the surge in emerging equity markets over the past decade, the US stock market still comprises about one-third of the global index. Also, the US economy has recovered from the recent recession and companies are making good profits: the latest earnings season suggested that companies in the S&P 500 reported profits of about 35%...