Second quarter rally for US equities is factored in

Optimism is growing that the US market will recover to trend growth levels in the second half of the year as strategists look to add to equity positions. In the eyes of Axa and Barclays, government bonds offer little value, corporate bonds still offer attractive potential upside for investors seeking a balanced approach. Concerns over the duration of the war in Iraq and the potential knock-on effects on oil prices continue to add a degree of uncertainty to the markets. Even so, fund managers are growing increasingly bullish that US fiscal easing will help sustain consumer spending a...