Deep Dive: 'Concerns over US valuations'

clock • 4 min read

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...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Investment

Partner Insight: Niches - Searching for roads less travelled

Partner Insight: Niches - Searching for roads less travelled

In this article, Richard Perrott from the MSIM’s International Equity Team, explains the team’s approach to finding potential investment opportunities within unexpected areas.

Richard Perrott, Executive Director International Equity Team @ MSIM
clock 28 October 2024 • 4 min read
Stories of the Week: Investment managers back in the black; Future Growth Capital to launch two LTAFs; Lombard Odier poaches Mark Goddard

Stories of the Week: Investment managers back in the black; Future Growth Capital to launch two LTAFs; Lombard Odier poaches Mark Goddard

Investment managers; Future Growth Capital; Lombard Odier: The biggest stories from the world of investment and asset management this week

clock 25 October 2024 • 1 min read
Partner Insight: Private assets for wealth management clients - why, and why now?

Partner Insight: Private assets for wealth management clients - why, and why now?

Schroders' James Lowe, explains why managers are increasingly investing client funds in private assets, highlighting the current trends and reasons behind this shift.

James Lowe, Sales Director, Private Assets and Investment Trusts, Schroders
clock 23 October 2024 • 3 min read
Trustpilot