Corporate America could be the saviour of global markets and the economy as United States companies invest more in their businesses, according to a fund manager at British bank Lloyds TSB.
US companies - which have been suffering from the bursting of the 1990s investment bubble - were about to start spending again, said George Lo, chief investment officer of Lloyds' fund management arm.
'Capital expenditure is not a big sector of the US economy,' said Geneva-based Mr Lo, a Hong Kong native.
'It is only US$1 trillion in the $10 trillion US economy, but it is very leveraged and accounts for a lot of growth.'
A pick-up in corporate spending would take some of the burden off badly stretched American consumers, who account for an estimated 70 per cent of the US economy.
With corporate investment leading US growth, Mr Lo believes investors should put money into equities - not bonds.
He recommended investors overweight technology plays such as Texas Instruments, a maker of digital signal processors for mobile phones.