Many companies will be able to withstand the current credit situation and provide good opportunities for the equity market, according to Threadneedle.

While there are “undeniable problems” in the US economy, the group pointed out that there are still many companies who will see good levels of growth.

Commenting on such opportunities, Cormac Weldon, Head of US Equities at Threadneedle, said: “Interest rates are falling and we are finding lots of companies with strong balance sheets and healthy cash flows that are well positioned to weather the tighter credit conditions we are witnessing.”

He went on to outline the importance of the company’s detailed research and “conviction in portfolios” as a means to high performance in 2008.

However, the US equity market has seen its weakest start to the trading year since 1932.

In related news, Threadneedle are to launch a new Emerging Market Local Fund designed to take advantage of emerging markets and the undervaluation of currencies.

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