Three solid American stocks

In contrast to the appalling state of US public finances, corporate America has largely got its balance sheet in shape. And while economic growth may be hard to come by, firms with a consistently high return on capital will do well, says professional investor Matt Strachan. Here, he picks three debt-free quality stocks to buy now.

Each week, a professional investor tells MoneyWeek where he'd put his money now. This week: Matt Strachan, investment manager, North America, Alliance Trust.

The debt crisis buffeting the 'Club Med' countries has focused attention on who owes what and their ability to meet those obligations. The retreat from risk has benefited US Treasuries. The yield on the ten-year bond has fallen from 4% to just over 3% in short order.

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