This means that the major US beneficiaries of fiscal and regulatory reduction could be the more domestically focussed small-cap sector, as is the case in the UK.
“A strong dollar will not be helpful for commodities or emerging markets, particularly those with elevated debt levels,” said Merricks.
“We will retain our exposure to cyber security, robotics and automation, and reintroduce the biotechnology sector as our favoured themes.
“Inflation won’t come roaring back next year, but it could tick upwards. Treasuries are unlikely to collapse from here, but their upside will be limited so we won’t be rushing into these.”
