Investors who have shunned this sector - in some cases since the dotcom bubble burst nine years ago - could have reason to re-visit their portfolios, and take advantage both of a weaker dollar and market values that have been flattened by two years of recession.
There are signs that the US economy is tentatively edging into a phase of recovery, albeit that tight credit and unemployment represent less tractable obstacles to a full-on period of growth. This is reflected in subdued consumer activity, putting a drag on an economy where two-thirds of production is driven by consumption. That said, the US labour market showed an improvement in November 2009, as the unemployment rate dropped back from its highest level in a generation, and job losses slowed acutely.
Some observers take the early indicators of improvement as cause to be wary about the central bank's intentions, and point to the dangers of a stalled recovery if interest rates are raised from their near-zero level too soon. However, US Federal Reserve Chairman Ben Bernanke was quick to make it clear that officials are in no hurry to curtail the 'extended period' for which the Fed is prepared to hold rates down. This reassurance was given extra weight by Mr Bernanke's belief that inflation is likely to remain subdued for now - and could even fall - and his acknowledgement that the economy is not going to come storming back any time yet.
If conditions are not as dire as they have been, it is also helpful to challenge the view, held by some investors, that it is nigh impossible to get ahead of the pack in US markets. The opinion goes that the markets are too crowded, highly developed and fast-moving for skilled stock-picking to make much of a difference. In this climate one would do just as well to buy into a fund that tracks an index such as the S&P 500. The trouble with this is that the S&P index does not represent the whole of the US marketplace, and several sectors have outperformed it.
In the UK, at the IMA North America sector level, median performance statistics do marginally lag those of S&P's index, delivering an 18 per cent total return in the 12 months to 12 December, according to Financial Express, against an S&P gain of 18.6 per cent. Longer-term, the sector returned 17.1 per cent over five years, while the index put on 18.9 per cent.
Performance of IMA North America sector vs FTSE All Share over 1-yr
Source: Financial Express Analytics
But, as with most averages and indices, the headline figures mask a wide range of outcomes. It is instructive to note that in the harsh environment of the past year, not one of the 87 funds in this sector has recorded a loss. Further, we can record 32 funds that have remained in positive territory over the past three years of destruction elsewhere.
Investors looking for optimal portfolio diversification would find it difficult to achieve without considering a marketplace that is still big, diverse and home to some of the best businesses in the world, currently on sale for bargain prices.
| Click here for IMA North America sector: Sector overview |
| Click here for IMA North America sector: Fund Managers' viewpoint |
| Click here for IMA North America sector: What the papers say |
| Click here for IMA North America sector: North America funds in focus |
| Click here for IMA North America sector: IFA's viewpoint |
| Click here for IMA North America sector: Neptune US Opportunities fund |