Miller Expects US Economy To Return To Its Earlier Strength

The famous fund manager of Legg Mason (NYSE: LM), Bill Miller, is close to regaining his top position as the best manager, after losing his 15-year record in 2006. Miller is betting on the return of the US economy to its old strength.

The data posted by Morningstar Inc (NASDAQ: MORN) in Chicago depicted that Miller’s Legg Mason Capital Management Value Trust has risen by 43% from the commencement of the year to December 24, beating about 93% of similarly managed funds. The fund managed by Miller also beat Standard & Poor’s 500 Index, which has risen 25%, for the first time since 2005.

Contradicting Mohamed El-Erian’s prediction of an extended period of below-average economic growth, Miller commented that investors will be attracted to stock funds in 2010, prompted by the economy’s improved prospects and a decline in returns from the fixed-income markets.