How five big US equity funds could fare in a rising inflation and rates environment

PureGroup director Ben Bird analyses how sensitive five of the largest US equity funds are to two leading indicators: US rates and inflation.

With the S&P 500 at its current high valuations, Trump policy redirection, and reflation, knowing the overall factor sensitivity of US equity funds is an additional layer of information that can help wealth managers and advisers build a more complete picture of a fund. The S&P 500 has now been above 2,000 points since November and the Dow was pushed above 20,000 points for the first time. There is plenty of noise around President Trump and the dubbed 'US reflation trade' but rising US bond yields provide evidence that the market is readying itself for increasing prices. The likely ...