Tertius Bonnin

The AI trade continues to dictate the pace at which the US (and indeed global) equity market progress. But as US cyclically-adjusted valuations move to levels not seen for 25 years, we are increasingly looking to other regions to find value.
Despite strong performance earlier in the year, the UK and Europe have their own structural issues which weighs on the prospective earnings growth outlook.
Meanwhile, in Japan and the wider Asia Pacific region, valuations are relatively cheap, and a weaker US dollar combined with the avoidance of an breakdown in the global trading system has injected optimism into the region.
For this reason, we continue to "own" the US while "renting" the regions.

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