Summer rally and Q2 profits help US

We believe the recent rally on Wall Street has further to go, supported by improved earnings and a further pick-up in underlying GDP over the third and fourth quarters. But investors should be wary of rich valuations as well as macro risks and in the context of global equities, Wall Street is unlikely to outperform. Wall Street's late summer rally has been supported by stronger-than-expected second quarter profits growth, a slowing down of unemployment growth, a narrowing monthly trade deficit due to export growth and a substantial upward revision to second quarter GDP to + 3.1% (year-on-...