The key question is whether the recent strength seen in US equity markets will prove to be sustainable. It is our opinion that it will, but it depends heavily on improvement in the balance of financial market and economic risks.On the former, the Federal Reserve's stance seems to have instilled a much-needed dose of confidence to market participants. While economic risks remain our chief concern, given inflation is currently contained and the Fed is ready to act as needed, we are given a degree of comfort that the current cycle need not end in recession.With valuations at reasonable levels, this should ultimately be a positive for US equities, notwithstanding the potential for volatility in the interim.