Tom McGrath

It is difficult to argue against maintaining our overweight position in US equities, which, whilst unarguably expensive, have momentum behind them and the most favourable economic backdrop. We think the Fed will still cut rates early next year, economic growth and corporate earnings will increase, and that is a good environment for equities.

Bonds less so, as we feel the inflation threat could come back to haunt, especially with Trump pushing tariffs through.

Outside the US, we think the UK economy could grow faster than expected, and equities look well supported by dividends and buybacks.

We maintain underweight exposure to Europe (slow growth / political chaos) and pretty much neutral on the Asian, Japan, and Emerging Market regions.