Optimism warranted over US recovery

An economic recovery for the US should be ensured in the second half of 2002, thanks to the massive monetary stimulus of 2001 and the potential for another fiscal boost this year. Some caution is still required as investors wrestle with valuations and try to decide how much of an economic rebound has already been discounted by the market. But although the equity market remains in negative territory year to date, we expect better returns going forward. A great deal of bad news was absorbed by the US equity market in 2001 ' the events of 11 September, an economic downturn and high-profi...