Political and economic worries push equity markets down

Nick Ford, who jointly runs the £585m Miton US Opportunities fund, said the US economy was more self contained than much of the world, with companies not relying on global growth to thrive. This had prompted him to invest more in small and mid cap companies.

Jacob De Tusch Lec, who runs the £4bn Artemis Global Income fund, said many investors were ignoring the relative health of the global economy and switching to defensive assets.

He said: "In parallel with this political uncertainty, some investors are looking beyond the fact that, by post-crisis standards, economic growth is rapid and shows little immediate sign of slowing. Instead, they are jumping ahead and anticipating the end of an economic cycle that has grown somewhat long in the tooth.

"So rather than owning economically-sensitive value stocks, they are hunkering down, preparing for a slowdown by moving back into low-beta, defensive stocks such as consumer staples and utilities. For this group of investors, today’s valuations don’t much matter."

Brian Dennehy, who runs adviser firm Dennehy Weller said investors should "ignore the noise" in markets and continue to deploy the same fund selection strategy as they always do.