Long-term secular trends remain positive

Most global investors remain underweight the US stock market, believing one or more of the following statements to be true. The US is a bubble economy driven by stock market gains; the stock market is grossly overvalued and about to crash; and US equities are less attractive given the improving global economy. However, remember that consensus is usually wrong (Asian Miracle in 1997? Strong Euro in 1999?) and that markets usually climb a wall of worry. Far from being a bubble, our view is that the US economy is in the midst of a productivity revolution that is being driven by unprecedented ...