Economic fundamentals look strong

As far as equity markets are concerned, the year has not started well, with most equity markets experiencing falls from the year end positions. There has been little comfort for investor confidence with the Iraq crisis still dominating the news and whatever happens next with Iraq will have strong ramifications for private investors. However there is some positive news. For example, the US economy continues to improve, albeit slowly. Low interest rates will allow re-liquification of the corporate sector and the US personal savings rate is up to 4%, a nice gain from zero not long ago. ...