New economy stocks see a revival in their fortunes

New economy stocks in the US have enjoyed a revival of late, with the Nasdaq Composite up by 18.6% in dollar terms from the beginning of the year to 20 June against a 10.5% rise in the S&P 500. Looking at the breakdown of sectors for the S&P index over the month to 24 June, the computer and electronic retail sector was the best performer, with a return of 18.13% in dollar terms. According to David Currie, investment manager at Edinburgh Fund Managers, the rally in these sectors was caused by positive earnings expectations. He says: 'US markets have been led higher by consumer,...