Equities strong despite housing concerns

Despite the credit concerns emanating from the housing sector, which continue to dominate investor sentiment, demand in the US equity markets remains strong. The US market is not overly expensive on historical measures and, in light of continued market volatility and with a large proportion of the world's mega-cap stocks, the US market should benefit from a flight to safety. However, investors should be aware that although earnings growth remains positive, it is likely to drop to more normalised levels from here and investors need to become more selective. On a stock-picking basis we li...