Talking Point 

Should US equities form part of a diversified client portfolio?

  • Learn why the US stock market has been in what is known as a bull market.
  • Understand whether clients should be concerned about macroeconomic factors in the US.
  • Consider why US equities form part of a well-diversified client portfolio.
CPD
Approx.30min
What is the outlook for US equities?
With the bull market in US stocks in its stride, how should advisers' clients be positioned in the asset class?
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Since the global financial crisis, the US stock market, represented by the S&P 500 index, has been steadily rising.

This means investors in US stocks have been enjoying a prolonged period of strong returns.

Now though, many advisers and their clients may be worried that US equities are looking overvalued and that another stock market fall is imminent.

Add to this the US President's trade war with China, which has been ramping up in recent months, as well as other macroeconomic concerns, and suddenly the outlook for US stocks across the market cap spectrum may not look so rosy.

But does this mean clients should adjust their exposure to the region's equities, or are US stocks an important way to diversify an investment portfolio?

Talking Point, in association with Schroders, considers the outlook for the asset class, whether economic factors are worth considering and how advisers can help their clients look past the market noise and focus on long-term returns.

The report, which can be read by clicking the link in the image above, qualifies for an indicative 30 minutes' worth of CPD. 

eleanor.duncan@ft.com

CPD
Approx.30min
  1. A bull market is a rising market which never falls more than how much from its peak, according to Schroders?

  2. Mr Cook says what "suggests we are still some way from the end of the cycle"?

  3. Mr Stammers says "arguably", since what event, all investors would have needed to hold was US equities?

  4. According to Mr Cooke: "All clients should hold a globally diversified portfolio." True or false?

  5. Mr Stammers predicts the bull market will continue but adds what?

  6. Mr Cooke says, over time investors will probably go through how many bear markets?

Nearly There…

You have successfully answered all the questions correctly, well done!

You should now know…

  • Learn why the US stock market has been in what is known as a bull market.
  • Understand whether clients should be concerned about macroeconomic factors in the US.
  • Consider why US equities form part of a well-diversified client portfolio.

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