Hargreaves Lansdown notes that Crispin Odey, manager of the CF Odey Opus Fund, is optimistic about the outlook for the US economy:
A key reason for his optimism is the improvement in the US housing market. Data released yesterday revealed that house prices in the 12 months through March rose by the most in seven years (growing 10.9% from March 2012). This should feed through to other parts of the economy - Crispin Odey notes that a 2% growth in new houses equates to a 22% increase in demand for freezers and washing machines. As a result the fund has positions in the likes of KB Home, a US residential house builder, and white goods manufacturer Electrolux.
Overall the fund maintains a strong bias to economically-sensitive companies in the construction, retail and banking sectors. Many of these companies have significantly strengthened their balance sheets over the last few years and he believes they offer a combination of strong growth prospects and attractive valuations.
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