Little foundation for pessimism over prospects for US equities

No wonder UK investors are so glum about Wall Street's prospects: rising US interest rates, a weak dollar against sterling in 2004, the level of the trade deficit and concerns about slowing GDP and corporate earnings growth all combine to take their toll on sentiment. However, it would be fair to say that the level of pessimism about US equities seems unjustified in the context of the positive messages coming from US companies - and given the general health of the economy. Economic growth is, in fact, stronger in the US than the UK. So far in 2005, the dollar has risen, jobs are on...