Behind the Dow Jones bounceback

A resurgent private sector is the main reason the US recovery is holding up so well.

PORTFOLIO POINT: A resurgent private sector is driving the US recovery, while public spending remains weak. Given the political situation in Australia, we may see a similar trend develop here.

When the Dow index of US shares rose above 13,000 this week – and stayed there – it was a clear signal that fundamental changes have taken place in the United States.

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