Threadneedle's Weldon sees positive US reporting season

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The US reporting season has pushed earnings expectations down to realistic levels and is already delivering some positive surprises, says Threadneedle's Cormac Weldon.

The head of US equities says many sectors have swiftly adjusted their cost bases, adding the US labour market is one of the most flexible in the world. He says US companies in areas such as technology have good recent experience of cutting costs, making it one of the group's key overweights. "Indeed, technology is an example of an industry where over-investment in the late 1990s had been worked out, leaving companies well positioned to deal with the recession." Weldon says while the overall bias of the Threadneedle portfolios is still relatively defensive, recent purchases have inclu...

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