Sutton said it will be difficult for the US market to perform strongly given high valuations, but it is not yet time to short the whole market. However, she warned investors to be very careful which stocks and funds they select to access the US.
On the long side, Sutton approves of the technology sector, including Facebook and Alphabet, and said a large portion of the fund is invested in semiconductors and semiconductor equipment companies – those that supply chips for use in new technologies.
Elsewhere, Sutton said Artemis is net short consumer staples. She explained these companies are generating cash, but valuations are full and firms such as Procter & Gamble and Johnson & Johnson will be challenged in the future by the way people consume – and that will eat into their market share.
