US Equity Investors Favour Healthcare and Telecoms

North America is leading the charge in the equity rally. But investors are favouring some surprising sectors

Old Mutual Global Investors 8 August, 2013 | 3:42PM
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This article is part of Morningstar's "Perspectives" series, written by third-party contributors. Here, Old Mutual North America fund manager, Ian Heslop, comments on North America is leading the charge in the equity rally.

In a single week in mid-July, according to data reported from EPFR Global, some $17.5 billion flowed into US equity funds. That is a mother of an inflow. America is making a comeback.

It’s not hard to see why. The US economy is on a roll. House prices are rising and employment is stabilising, with of string a good job creation numbers over the past 12 months. Consumers are feeling better and starting to spend more confidently. Instead of the widely feared fiscal cliff, sequestration – as it’s now being called – has proved a boon, reducing Federal spending without the need for divisive, dispiriting political cage-fights. The International Monetary Fund now expects the US Federal deficit to fall to a manageable 2% within two to three years.

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Old Mutual Global Investors  Old Mutual Global Investors was formed in 2012, combining Skandia Investment Group’s multi manager expertise with Old Mutual Asset Managers’ direct investment prowess.

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