Marlborough's Moffat: US to deal with future challenges better than Europe

Despite remaining expensive

While the S&P 500 and Nasdaq Composite may appear expensive relative to European peers, US businesses and the US economy both look better positioned to face the challenges and opportunities that lie ahead.

Unlike Europe, the US has a federalist structure with common debt mutuality. Both have a single currency regime, but for Europe - a region with significant regional and productivity differentials - this currency acts as a straitjacket, suppressing flexibility. With more dynamic internal demand trends, the US represents the most sophisticated of large-country economic models. Where are the opportunities in US small caps? There are reasons for investors to be vigilant. US stock valuations look high relative to other global markets and there are inevitably risks surrounding the S&P...