US Equity: A Trumped-up market?

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For financial professionals only

Many US citizens worried about Trump’s possible re-election will be happy about his conviction. Others are deeply troubled, and their faith in the US justice system has been shaken. 

From this side of the pond, it seems few Americans are happy with the political landscape or their choices in the upcoming election.  And yes, I know some might say the same is true here in the UK.

However, the US has some very big questions to answer:

  • How sustainable is almost $35trn of national debt with annual interest payments approaching $1trn?
  • Can the stock market continue to outgrow the rest of the world and justify sky high valuations?
  • Will the big tech bubble burst?
  • Will the housing market crumble under the weight of 7% mortgage rates?

World Index Domination

Right now, investors who want to avoid or limit their exposure to the US may have some difficulty in doing so – roughly 70% of the MSCI World index is allocated to the US.

Asset allocation table for PIM Strategic Active Quarterly Solution Q4 2023

This article is for financial professionals only. Any information contained within is of a general nature and should not be construed as a form of personal recommendation or financial advice. Nor is the information to be considered an offer or solicitation to deal in any financial instrument or to engage in any investment service or activity.

Parmenion accepts no duty of care or liability for loss arising from any person acting, or refraining from acting, as a result of any information contained within this article. All investment carries risk. The value of investments, and the income from them, can go down as well as up and investors may get back less than they put in. Past performance is not a reliable indicator of future returns.  

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