David Coombs, head of multi-asset investments at Rathbones, dives into US equities
As 2022 gets under way, investors continue to express their concerns about lofty US equity valuations. And for good reason: US market returns have been dominated by a handful of growth names, like Tesla, Apple and Nvidia, which have high price-to-earnings ratios (P/Es) and the potential to underperform if, or more likely when, the Federal Reserve hikes interest rates. However, I believe there is an important distinction between ‘growth' and ‘speculative growth' stocks in the US. While I have concerns about the latter, I am happy to invest in quality growth businesses which are profita...
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