Analysts show faith in US recovery
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.FEARS of tax increases in the US may have depressed the Dow Jones index, but analysts are still backing two new investment trusts specialising in US equities, writes Neasa MacErlean.
Foreign & Colonial's new US Smaller Companies trust and River & Mercantile's American MidCap Trust are both being recommended by stockbroker Gerrard Vivian Gray.
The Dow Jones Industrial Average fell by 70 points on the week in response to President Bill Clinton's talk of tax rises.
Gerrard Vivian Gray strikes a note of caution, however: 'The US market is fairly fully valued and vulnerable to unexpected policy changes from the new administration.
'On a longer-term view the US dollar still looks undervalued and a strengthening dollar should enhance returns for UK-based investors. The arguments put forward by both (investment trusts) in favour of small and medium-sized companies - the areas in which they intend to invest - are sound and one would expect to see these companies benefit from the recovering US economy.'
Foreign & Colonial's new trust will be run in tandem with its US smaller companies unit trust, which headed Micropal's five-year best performance tables at the end of 1992, with 'a relatively conservative investment policy'.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments