Rathbones is maintaining an overweight allocation to US equities, with a preference for more cyclical and value-orientated stocks, but the firm is wary of the potential impact President Joe Biden's tax plans could have on progress in this market area.
Biden's infrastructure spending plans and a more dovish approach to budget deficits support the outlook for US equities, according to head of asset allocation Ed Smith, who cautioned that investors must "concentrate" on the president's "second 100 days" in office, which "could have much more profound impacts on the economic landscape over the rest of his term, and possibly beyond". Biden win more important for global climate agenda than US economy "Investors have got to be very careful from a micro-economic perspective when looking at the tax plans," Smith told Investment Week. "Bi...
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