Upside seen in US equities as inflation fears overtraded

Investors are being encouraged to step back into US equities amid expectations of record earnings growth next year and further signs of recovery in the domestic economy. Speaking via teleconference from the US, Mike O’Rourke, chief market strategist for institutional brokerage and fund services firm BTIG, notes that US stocks only need 5% growth on top of this year’s forecast earnings to achieve record earnings in 2011. “When this theme starts playing out, you will see the big institu…