View more on these topics

&#39US won&#39t fall into a double-dip recession&#39

The US economy is unlikely to fall back into a double-dip successive recession predicts Govett&#39s US opportunities fund manager Gil Knight.

The US slipped into recession in March last year but returned to growth in the fourth quarter last year and, following GDP growth of 5.8 per cent for the first quarter of this year, Knight says it is extremely unlikely that America will slide back into recession.

Knight says he is confident of economic recovery in the US, although he does not believe it will continue to perform at the same rate as the first three months of the year.

Technology and telecommunications are continuing to decline while the most recent unemployment figures have increased to 6 per cent from 5.7 per cent.

Other gloomy news is the weak market for large-cap stocks but Knight believes smaller and mid-cap shares continue to look attractive.

He has increased the fund&#39s holding in healthcare stocks such as Sierra Health Services and Health Net as well as the position in financial institutions such as UCBH Holding, Hudson City Bancorp and Hawthorne Financial. He has sold Motorola, AOL Time Warner and Merrill Lynch.

Knight says: “A double-dip recession is very unlikely. Consumer spending is strong, for example, on cars and furniture and this should carry the economy well into the second half of the year. Although consumer confidence slipped a bit for the latest figures, industrial production remains satisfactory.

“Consumer spending should continue to support the US economy and we believe that sectors such as housing, retail, mid-cap banks and family restaurant stocks remain attractive.”


&#39Asia poised for equity revival&#39

Dresdner RCM Global Investors is predicting that Asian markets are set for recovery within the next three years. The fund management firm believes that Korea, Taiwan and Hong Kong will lead the Asian markets in future growth. Dresdner&#39s Oriental assets fund manager Stuart Winchester says strong companies are now emerging in the area after a […]

Friends buys Royal & Sun Alliance offshore arms

Friends Provident has bought the offshore arms of Royal & Sun Alliance for £133m, following the Friends Ivory & Sime deal for its fund management business. Friends has now acquired the Isle of Man based life operations of R&SA, and the Luxembourg operations of R&SA Investment Management. The deal bumps up Friends&#39 offshore market share […]

Web wonders

Business agility – the ability to respond quickly to change and stay ahead of competitors – will be crucial for IFAs and service providers as they struggle to survive in a sector where products and services are being developed faster than ever and new regulations are constantly being imposed. However, research from BT suggests that […]

Ale and hearty

My partner and I are tenants of a public house. Over the last 18 months, we have put a lot of effort into turning the place around. We have relatively little income left over each month. Our bank, with which we have an overdraft, has recommended that we both save £100 a month in a […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers. Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and thought leadership.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm