As we head towards the end of the year, fund management groups and other pundits are starting to make their investment predictions for 2011.
The latest “Question of the Month” findings from F&C looked at the prospects for US Equities during the year ahead.
Whilst 74% of respondents felt that dollar weakness was likely in 2011, it was perhaps unsurprising that no consensus was reached on the direction of the US stockmarket next year.
Around 43% agreed that the dollar would be weak but the market would be strong. A further 22% believed that the dollar and market would be strong in 2011.
Looking at prospects for US equity market weakness in 2011, only 4% felt that the dollar would be strong and the market would be weak, the least likely scenario.
Just over 30% think that the US dollar and markets will be weak next year.
Our current House View for US equities, formed at the start of October, is to remain neutral. As our Investment Committee starts to form its House View for the first quarter of 2011, we will need to carefully consider the impact of dollar weakness next year.
Photo credit: Flickr/Dru Bloomfield – At Home in Scottsdale
