Positive outlook for equity market

Since reaching a bottom on 11 March, US equities have performed exceptionally well. The Nasdaq Composite Index is up more than 20% year to date and returns for the Dow Jones and S&P 500 indices are also in double-digit territory. We would not be surprised to see the market take a pause here, as it assesses the outlook for earnings in the second half of 2003 and into 2004. After the volatility of the past three years, investors are still wary of equities but there are signs they are willing to dip a toe back in the water, particularly while returns in other asset classes are negligib...