Market intent on ignoring positives

Greenspan has ensured an exciting start to 2001. Fund managers had little chance to alter portfolios away from value defensives towards cyclicals and growth before he surprised the markets with an early cut in interest rates. We believe that just as some of the bullish sentiment in the last couple of years ignored the negatives, the prevailing mood of bearishness at the end of the year ignored the positives. The US is clearly well placed to offer further policy boosts through interest rate cuts should these be required. Investors now know that Greenspan has always been very focused on gr...