The current trade dispute between the US and China have prompted John Bilton, head of global multi-asset strategy at JP Morgan, to reduce the level of risk in the portfolios his team runs.
Mr Bilton pointed out faith in US economic strength spreading around the globe was being shaken by escalating tensions over trade.
China and the US are locked in an ongoing trade war as each country has introduced tariffs on goods traded with the other.
At the start of this year, President Trump put a 10 per cent tariff on billions of pounds worth of imports from China.
He is now threatening to increase the levies to 25 per cent in 2019 if no China-US trade deal can be agreed.
Mr Bilton said this has prompted JP Morgan to meaningfully reduce the level of risk in multi-asset portfolios.
He said he expects global growth to continue, but at a more moderate level than had been the case as "trade rhetoric" impacts on asset prices.
Mr Bilton said his team, which manages the £387m JP Morgan Multi-Asset Income fund and the £82m Global Diversified Growth fund, is generally focusing portfolios towards the US, and has reduced exposure to emerging markets and his least favoured equity market is the Eurozone.
David Scott, an adviser at the firm of Andrews Gwynne in Leeds, said stock market conditions now resemble those of 1998, with what he anticipates to be a market correction about two years away.
david.thorpe@ft.com
