Around two-thirds of advisers expect US equities to outperform relative to other global markets, according to data from the latest FTAdviser poll.
The poll, which was conducted via the FTAdviser Twitter account, asked the question “Can US equities continue to outperform?”, with 65 per cent of respondents answered in the affirmative.
After more than a decade of low interest rates and central bank quantitative easing programmes, the thoughts of many market participants are turning to a world where rates are higher as inflation and economic growth pick up.
Such a scenario is generally viewed as a negative for US equities as proportionally fewer of the types of companies that benefit from such an expansionary economic scenario are located in the US that benefit from those market conditions, relative to the number of growth companies that are located in that market.
The potential shift towards value stocks has receded in recent days, as policy makers in the US have begun to communicate that interest rates may rise sooner than expected, this would be likely to moderate the rate of inflation and boost growth stocks.