"We think recovery is on track but there are still some left-field risks out there. Oil at over $100 a barrel is likely to put pressure on the world economy as is the slow-down in the Far East and Europe," he said.
"In the US there are still some structural headwinds such as the debt overhang and fiscal measures. However, the cyclical momentum is outweighing the headwinds."
The US and global specialist says that there must continue to be austerity measures going forward but that there is plenty of momentum to provide economic growth.
"The Government will be focused on getting the economy back on track as this will make addressing the structural issues easier," he said.
US governments typically spend more in the third year of a president’s term as they prepare to make a case for re-election. While Holliman believes that Barack Obama’s approach is different, a pattern of spending is likely to boost the equity market.
"We are already seeing some spending from Obama and the stimulus will continue this year. However, this is less driven by the classic presidential cycle," he added.
The revision of US gross domestic product figures (GDP) to 3.1 per cent from 2.8 per cent is an indication that there are compelling investment opportunities in the region and that the global recovery is looking more robust.
However, Holliman, who manages Threadneedle’s American and Global Extended Alpha funds, says this is an oversimplification. The real benefit to investors is that the range and depth of the US equity market offers plenty of choice to fund managers.
"The story of investing in the US is much broader than the headlines of GDP growth," he continued. "The good thing about being a US manager is that we have a broad market to invest in. There are attractive blue chip companies as well as finding value in smaller cap companies."
According to Financial Express data, Threadneedle American is the sixth-best performing fund in IMA North America over five years, returning 29.78 per cent compared with 14.9 per cent from the sector average.
The fund is also performing well over three years, returning 38.5 per cent compared with 26.9 per cent from the average fund.
Performance of fund vs sector over 5-yrs
Source: Financial Express Analytics
Holliman says there is good growth to be found in a large number of industries.
"We currently have a slight overweight in industrials, with stocks like Roper Industries looking good and Tyco International looking attractively valued after a restructure. Also, the automotive market and commercial real estate are yet to reach the top of their cycle."
"There are compelling stories in the US tech market with blue chips like Apple, Google and Oracle still looking good but we are also finding value further down in mid- and small-cap companies like CGI, a Canadian outfit, and another IT company MacDonald Dettwiler."
Threadneedle American has much of its £1.5bn assets under management (AUM) invested in the telecom, media and technology sector as well as 22.5 per cent invested in consumer products.
Patrick Connolly, who advises at AWD Chase de Vere, says that in the short-term the Federal Reserve’s second round of quantitative easing (QE2) has made the US stock market quite attractive.
However, he has reservations about whether this will have the desired impact over the long-term.
"The big question mark is whether we see a bounce-back in corporate earnings and whether the money the Fed has pumped in has been effective. In the long-term it is very much a case of wait and see," he said.