The FAANG stocks, for example, have not recently driven markets in the way they previously tended to.
They also face regulatory scrutiny – but still generate positive returns and make up a large part of many funds.
But it is worth noting the resurgence of older tech names: Microsoft, for example, has gone from the risk of seeming defunct to regaining its momentum.
As much as the US market has winners and losers, such trends are difficult to predict.
The value trade could prove a damp squib, small and mid caps could suffer if any economic downturn does arise, and the tech world faces various challenges. As such, any bias to these areas should be expressed within a broader portfolio.
Ben Yearsley, of Shore Financial, blends four funds that are predominantly US-focused: Polar Capital Global Technology, the Biotech Growth Trust, Legg Mason Royce US Smaller Companies and long/short offering Artemis US Extended Alpha.
He has gone for this approach to tap into the US economy via smaller companies but also access some of the country’s leading industries, tech and biotech.
As he notes, “you could do a lot worse than simply buying an S&P tracker”.
But investors with strong views on the US outlook could consider a more nuanced approach.
