Tilney's CIO Godding: Stay long US equities despite trade war 'rhetoric'

Inflationary pressures in Europe

We have seen double-digit returns in sterling terms from the S&P 500 year-to-date, a market that most strategists recommended investors to underweight for 2018.

We increased our weighting last year and continue to recommend that investors stay long. Earnings are strong and the increase in capital investment will boost productivity in the long term. The best way to protect capital is to buy assets when they are cheap and under-owned.  The trade war rhetoric is damaging, but we expect the negative momentum will come to a head during September. If the trade tensions moderate, investors will refocus on the recent fiscal and monetary stimulus in China and idiosyncratic opportunities presented by the recent sell-off. The strength of the dolla...