Although 2002 was certainly a challenging year for US equity investors, it could have been worse....
Although 2002 was certainly a challenging year for US equity investors, it could have been worse. The Federal Reserve's policy of uncompromising expansionary monetary policy appears to have had the desired effect. Interest rates currently stand at a 44-year low and money supply is robust. This has encouraged consumers to carry on spending, thereby underpinning the economy and contributing to impressive third- quarter GDP growth of 4.0% on an annualised basis. Meanwhile, companies have boosted profits by focusing on cost cutting to stabilise profit margins, while at the same time ...
To continue reading this article...
Join Professional Adviser for free
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes