America Still Land of Opportunity for Investors: Millions of jobs have been lost and unemployment remains stubbornly high at just over nine per cent. Yet talk to the investment managers and financial strategists in their airy New York offices and a very different picture emerges.
America Still Land of Opportunity for Investors: Is it time to invest in America?
Bob Doll, the chief equity strategist at BlackRock and manager of funds including BlackRock US Dynamic, says that relative to other developed markets, the US is faring well.
‘The economy is growing at two per cent a year, more quickly than any thing that you see in Europe,’ he says. ‘Corporate earnings were up 15 per cent in the third quarter of the year. We’re the best house in a bad neighbourhood.’
Clare Hart, executive director at JP Morgan Asset Management and manager of investment fund JPM US Equity Income, says: ‘A significant number of companies are doing well selling into the global market. US companies, bolstered by record profits and significant cash hoards, are increasing their dividends at the fastest pace in seven years.’
Whitney George is co-chief investment officer at Royce & Associates, which specialises in smaller companies and manages Legg Mason US Smaller Companies fund.
He cites natural resources, technology and agriculture as three sectors of the economy that are strong. ‘In middle America, things are good,’ he says. ‘People selling blue jeans to farmers are doing nicely.’