US: No sign yet of investor 'euphoria'

Worries over underlying drivers

Riding the rollercoaster of the Trump administration is full of unexpected twists and turns.

We urge investors to pay attention to the over-demanding valuations it has created in some sectors of the US equity market; multiples have increased over the last six months in the hope of a pro-growth policy, and hope can never be considered a solid basis for an investment strategy.  Firstly, many of the proposals currently under discussion are without widespread support.  Secondly, even among Congressmen, the great divide between deficit hawks and progressive Republicans is playing out; at this stage, no one has a credible and politically acceptable plan to finance the announced tax...