The USA will drive global economic recovery in equity markets with a rebound in 2002, according to Foreign & Colonial's chief investment officer.
F&C Management group chief investment officer Dr Arnab Banerji is predicting a quick recovery in the middle of next year, and that cash will out-perform government bonds in 2002.
Banerji says: “The United States, Europe and Japan are all in recession or facing recession. Despite this gloomy picture, the global economy will be out of the doldrums by the second half of next year. F&C believes that a combination of interest rate cuts and fiscal stimuli will drive this recovery and furthermore we think that recovery will be led by the USA. There have only been three bear markets significantly worse in the last 100 years versus the downturn between March 2000 and September 2001.”