Advisers still finding 'overvalued' US hard to ignore this Fourth of July

Trackers favoured over active funds

Victoria McKeever
clock • 4 min read

US equity markets may be hovering around record highs but, this Fourth of July, Professional Adviser discovers advisers are still finding it tough to ignore the world's largest market.

According to Old Mutual North American Equity fund manager Ian Heslop, the benchmark US S&P 500 index has posted a total return of some 100% over the past 10 years - effectively doubling investors' money if they had reinvested their dividends. On the same basis, the MSCI World index has returned 57% and Heslop goes on: "Thanks to the weakness of the pound, sterling-based investors have enjoyed a total 10-year return of 209% from the S&P 500 - more than tripling their money." Given this prolonged success, however, Heslop raises the question of whether US equities have grown overvalued,...

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