Confident investors see growth potential in US market

Investor confidence is beginning to return to the US market, according to research from Barclays Stockbrokers. As Barack Obama's inauguration is predicted to trigger a recovery in the market, the poll reveals nearly a quarter of investors (24%) believe the US market has growth potential in 2009. A further one in ten (11%) believe the US market is currently a good value buying opportunity. However, the poll did reveal that caution remains; almost two fifths of respondents (39%) believe the US is still too volatile to invest in, and just over a quarter (26%) believe US markets will not deliver returns this year.

In response to the growing interest in the US market, Barclays Stockbrokers launched the US Top 500 Supertracker Investment Note, enabling investors to capitalise on potential growth in the market. The Note linked to the market value of the S&P 500 Index, has a three year term and offers two times the rise of the index up to 25%. Full capital invested is repaid at the end of the term if the Index does not fall below 60% of its starting level at any time during the term. If it does and finishes below the starting level capital repaid is reduced by the percentage that the Index at the end of the term is below its starting level.This Investment Note closed on 26 January 2009 to those buying directly from Barclays Stockbrokers, but is now available to buy and sell on the LSE3.

Barbara-Ann King, Head of Proposition at Barclays Stockbrokers says: "Despite the economic decline of the US over the past year, it is encouraging to see nearly a quarter of our clients remain optimistic that the US market has growth potential in 2009. The US market is predicted to begin its recovery this year following the rapid decline of the economy in 2008 according to research from Barclays Wealth4, and there are a number of investors who believe now is the time to invest in this market. Those investors who are looking to take advantage of the potential growth in the US market can do so through Barclays Stockbrokers US Supertracker Investment Note; allowing for growth over the medium term."

Henk Potts, Equity Strategist at Barclays Stockbrokers, comments: "Equity markets in the US will endure heightened volatility in the first part of the year, and may well be pushed lower, even though they are already cheap. Given stock prices' leading properties, it is reasonable to expect a sustained pick-up as early as Q2. Looking one year out, we see an upside of 15% for the S&P 500. The improved outlook for profits and diminished risk aversion should benefit equities."