Legg Mason's Bourbeau: No tax reform would be 'big fail' for US large caps

Managing director and portfolio manager of Legg Mason's $840m ClearBridge US Large Cap Growth fund Peter Bourbeau has warned the biggest US stocks could suffer significant fallout if President Donald Trump fails to pass significant tax reforms, which have already been partially "priced-in to the market".

Bourbeau, who manages the fund alongside Margaret Vitrano, said any overhaul would be positive for the largest firms, but is sceptical "comprehensive" reform will pass. ETF Snapshot: US large caps attract €7bn on Trump's tax reform agenda He said: "I am not sure if it has been fully priced in, but [considering] the 30%-or so move [in markets] we have seen since Trump's inauguration, some of this is certainly factored in and that is a concern. "We have had P/E multiples grow faster than earnings for the most part, so clearly investors are positioning themselves for some version of t...