The Bristol-based firm has bought a 5% holding in the Artemis US Small Companies Fund, it confirmed on Tuesday, attributing the move to the improving outlook for markets and optimism for the economy following the election of President-elect Donald Trump.
Promises of tax cuts and deregulation saw an index measuring confidence among US small companies, monitored by the National Federation of Independent Businesses (NFIB) experience its biggest monthly gain since the 1980s in December.
Gavin Haynes, managing director of Whitechurch Securities, confirmed it was the first time the wealth management firm had bought into US stocks since before the crash and said: “We have been underweight in the US stock markets recently but confidence in it is improving.”
However, he remains cautious on the whole, and added: “The jury is out on what the real impact of Trump’s policies will be. There’s a lot of euphoria out there but there are a number of headwinds for the stock market as a whole to look out for. It’s not universally good, we’re not universally bullish, but it seems like an area we should be in.”
Measuring 105.8, the NFIB index was at its highest level since the end of 2004 having jumped up more than seven points in just one month.
NFIB president and CEO Juanita Duggan said in a report: “Business owners are feeling better about taking risks and making investments. Optimism is the main ingredient for economic expansion. We’ll be watching this trend carefully over the next few months.”
