US equities: It is neither a time to panic nor be gung-ho

The Trump card was once seen as a joker in the presidential election pack. But the possibility of him being elected is now being taken seriously around the world and from an investment perspective that clearly generates some anxiety.

Add to this the fact that US equity valuations are not historically cheap and it is clear why so many portfolio managers have mixed emotions about the US at the moment. The Federal Reserve is struggling to normalise interest rates. It increased them for the first time in nearly a decade last December and many then had pencilled in two or three rate rises this year. Since then, it has made no further moves. Asked at the end of May when the next rise would come, Fed chair Janet Yellen promised: "I won't delay them very long." Though the numbers can be mixed, the general trend appears...