Coombs, head of multi-asset investments at Rathbones, will continue to plump for US equities over Europe despite the recent upswing on the continent and has been continually adding to his exposure to larger US companies.
He dismissed the positive economic data for the European area as something of a “false dawn” that could be based on spurious economic signs with the impact of Brexit and European elections yet to be fully realised.
Coombs said: “We think the US economy is the most exciting because there is growth and despite it not being the cheapest, it is still the least risky and we will be adding more.
“The market is excited about European equities but we think there is more growth in the states and you have to pay up to get growth.
“We do not think growth is sustainable in Europe so while we do have some European stocks they are global earning stocks, not domestic.”
Rathbones’ strategic growth fund, considered medium risk, has a 20% exposure to US markets, as compared to its exposure in Europe which is just 7.5% and in the UK, at 13.5%.
Coombs is far more neutral on controversial president Donald Trump, claiming people on both sides have become too excited.
“There’s just far too much over analysis of Trump in a sense people get too pessimistic and then too euphoric and the reality is somewhere in the middle,” Coombs added.
“People need to calm down a bit. I think the US economy is going to grow quite steadily. I added to the US the day after the election.”
