Investec: market panic has overshadowed positives in the US

King highlighted a number of positive factors which he says will help to stimulate the US market. Firstly, he pointed to the $50+ drop in the oil price, which represents a $1.5tr transfer of annual spending power back from energy producers to energy consumers. Secondly, the nationalisation of Fannie Mae and Freddie Mac, which has led to a drop in mortgage rates of over 50 basis points, are factors which will help to support spending power and confidence in the US economy. Further to this, the positive slope of the US yield curve creates a favourable environment for banks to trade prof...