Earnings momentum remains strong

Entering into 2001, world economic growth is expected to slow. After the longest period of consecutive growth on record, the US economy is starting to wind down and the rest of the world's economies are taking note. Global inflation remains well under control everywhere, except possibly Europe. As the US economy continues to slow, the euro and sterling have the opportunity to recoup some lost ground against the dollar. Corporate earnings moment-um remains strong in the US and UK which means these are our favoured equity markets for the near future. We reached the peak in the interest rate...