Deep Dive: 'Concerns over US valuations'

clock • 4 min read

David Coombs, head of multi-asset investments at Rathbones, dives into US equities

As 2022 gets under way, investors continue to express their concerns about lofty US equity valuations. And for good reason: US market returns have been dominated by a handful of growth names, like Tesla, Apple and Nvidia, which have high price-to-earnings ratios (P/Es) and the potential to underperform if, or more likely when, the Federal Reserve hikes interest rates. However, I believe there is an important distinction between ‘growth' and ‘speculative growth' stocks in the US. While I have concerns about the latter, I am happy to invest in quality growth businesses which are profita...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Investment

Aegon AM launches UK-domiciled global income fund

Aegon AM launches UK-domiciled global income fund

In response to client demand

clock 27 June 2025 • 1 min read
CCLA's Charlotte Ryland and Joe Hawkes: How to position for the end of the 90-day tariff pause

CCLA's Charlotte Ryland and Joe Hawkes: How to position for the end of the 90-day tariff pause

Focus on quality

Charlotte Ryland and Joe Hawkes
clock 26 June 2025 • 4 min read
Almost half of UK investors using social media for financial advice

Almost half of UK investors using social media for financial advice

Many sources 'unregulated and unverified’

Sorin Dojan
clock 23 June 2025 • 2 min read
Trustpilot