Why I’m shunning US shares right now, by top investor Why I’m shunning US shares right now, by top investor

Simon Evan-Cook, who helps run the Premier Global Multi-Asset Growth fund, has revealed why he has been selling down his investments in the US stock markets.

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Evan-Cook, parodying a slogan associated with Donald Trump told What Investment, ‘as far as we are concerned {as investors} it is ‘America Last’ right now.’

The fund manager said that in a world where there are myriad political and economic uncertainties, ‘we can’t know what is going to happen with the politics, it would be guesswork. And even if you do get the politics right, then you don’t know what the stock market reaction will be. I mean, if you had been right that the UK would vote to leave the EU, then you would as an investor probably have shorted the market, and then of course the market went up. And if you had predicted that Donald Trump would win the US presidential election, you would probably have shorted that market, and then the market went up.’

Read more: Why US equities are a poor investment right now, by veteran investor

Rather than grapple with those uncertainties, Evan-Cook commented, ‘in the end it comes back to valuations. We can look at the valuations, both in absolute terms and relative to other markets.’

He opined that when compared to valuations in other markets, US equities are not particularly attractive right now.

At present his funds have just 5 per cent of their capital allocated to the US market, and that is through a ‘tracker’ fund.

Evan-Cook opined that while a ‘glass half full’ mentality presently transfixes markets, ‘the US stock market is the only one that could be said to be expensive right now.’

More broadly, the fund manager has been moving away from investments in bonds.

He is more keen on investments in property, commenting, ‘If you fear there is going to be a crisis, well London property will be like the cockroach of the market, it can survive. You can’t make more of it, so there is a limited supply, and as a major city there will always be demand.’ Evan-Cook is presently focused on buying investment trusts, rather than open-ended funds, in order to access property.

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