Yes, the U.S. recovery has been modest, but it still has legs—if wobbly—this year.
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For starters, US economic growth is widely expected to out-muscle Europe and Japan, and the positive signs are increasingly heartening, pushing analysts to raise their GDP estimates.
“The recovery is real,” says David Darst, chief investment strategist at MorganStanley SmithBarney. “But it will, at times, be halting and anemic.” He predicts that GDP growth will notch four percent this year, compared to 4.4 percent globally.
Global Gorillas
So, many analysts, including Darst, are bullish on stocks—especially multi-nationals with high dividends and attractive price-earnings ratios. “Don’t be underweight in global gorillas that are under loved,” adds Darst.
Dynamic emerging markets will grow 6.4 percent this year, adding oomph to U.S. industrial stocks. Of the BRICs India and China are set to notch the strongest gains and Brazil the lowest, according to MorganStanley estimates. Read more
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