Proceed with caution
America’s economy looks set for a good year. But investors should beware the treacherous path beyond 2011
The American economy
Dec 29th 2010
THE American stock market enters 2011 in a jolly mood. In the past four months it has leapt by 20%, to heights last enjoyed when Lehman Brothers was a going concern. Investors are likely to cheer a second consecutive year of double-digit returns.
This partly reflects growth elsewhere: American companies make a third of their profits outside the United States. But the most recent spurt has been driven by a sharp change in the outlook at home. At the end of the summer Wall Street worried that growth was grinding to a halt.
Read the rest of the article on the Economist.