The US economy is likely to grow by 3-4 per cent this year, presenting good opportunities for Irish investors in US equities, according to a new report on Global Investment Themes from Ulster Bank Wealth.

The report predicts that in 2011, US and European equity markets will outperform emerging markets; investors should favour share buy-back candidates or high yielding stocks; the dollar will recover versus the euro; cyclical commodities such as oil and copper will rally; and the outlook for US government bonds is negative.

“Deflation was the buzzword for much of 2010 but already this year inflation has emerged as a bigger theme. Investors are likely to continue to look for inflation hedges and as a result we expect further investor inflows into commodities,” said Alan Dunne, investment director with Ulster Bank Wealth.