That the US has still not had a single negative quarter of growth, despite the two year collapse in house prices, is testament to policy makers' determined efforts to pre-emptively support the economy, according to Sarasin & Partners' Guy Monson.
Monson, CIO and managing partner at the firm, said that aggressive US interest rate cuts have leaked into the broader world economy, thereby strengthening global growth by more than might have been expected. As such, he sees the challenge for investors as being one of assessing valuations, rather than of accurately predicting global growth and inflation. He sees opportunities even in the bear market, and cited selective attractions in financials and global REITS. Monson also sees the undervalued dollar as serving to rebalance global demand away from the US consumer, towards the global ...
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