Why it pays to be selective investing in the US

On 14 June, the Federal Reserve raised short-term rates by another 25bps from 1% to 1.25%, despite fairly weak inflation figures.

Its post-meeting statement also confirmed a 'normalisation' programme, detailing a phased approach to ending the reinvestment of maturing bonds for the first time.  We once again set off into unchartered waters as the 'great unwind' begins, but what does this mean for the US equity market?  The S&P 500 has delivered a total return of 277.2% since its 2009 low, thanks in no small part to the very accommodative monetary policy that has been in place over that period. This equates to 17.5% per annum - more than 10% higher per year than the often quoted long-run average expected equity...