Interest rates help fuel growth

Over the year, the US macroeconomic outlook has been dominated by interest rate changes and the global recovery. This in turn has helped fuel the growth stories, especially in technology stocks. The top two performing US funds outstripped the competition significantly. Some of this difference can be attributed to their small sizes, which allowed stronger positions to be held. The $7m Orbitex West Coast fund, for example, holds 15 stocks. Fund manager Vanessa Daniels says: "The Fed eased interest rates three times in the fall of 1998, from 5.5% to 4.75%, to help correct the Asian financial ...