Is US economic recovery the next big risk to global markets?

Rathbones' head of multi-asset investments is hedging portfolios against a market fall as the US recovery looks set to bring an end to quantitative easing.

Rathbone Unit Trust Management’s David Coombs (pictured) said he fears the rising equity market in the US may lead to a sooner-than-expected change in monetary policy, which would ultimately damage sentiment. Both the S&P 500 and the Dow Jones hit record highs this month as investors flocked towards risk assets. Coombs is concerned this strong rally may lead the market to price in the end of QE and an interest rate hike. “One of my concerns is the positive data from the US this year may spell the end of QE, and markets would enter a discount cycle, as investors tend to start worryi...