US large-cap companies – already a market segment that stands out in terms of capital appreciation in recent years – remain in a sweet spot for further growth, argues Geoff Dailey, Head of US Equities, in this short video.
The major US companies that find favour with our investment team have healthy balance sheets, high-quality innovative products and generous free cash flow. Their mature business models have powered them through business cycles with positioning as market-leaders the basis for their above-average growth.
We believe ‘selectivity’ and ‘broaden your horizons’ are pivotal themes for large caps in 2025 for a stock market supported by a robust US economy. That means picking compelling stocks across all sectors where valuations leave scope for outperformance.
Business sectors of particular interest are those connected to artificial intelligence, cloud computing, reshoring, genetics and medtech.
Disclaimer
Please note that articles may contain technical language. For this reason, they may not be suitable for readers without professional investment experience. Any views expressed here are those of the author as of the date of publication, are based on available information, and are subject to change without notice. Individual portfolio management teams may hold different views and may take different investment decisions for different clients. This document does not constitute investment advice. The value of investments and the income they generate may go down as well as up and it is possible that investors will not recover their initial outlay. Past performance is no guarantee for future returns. Investing in emerging markets, or specialised or restricted sectors is likely to be subject to a higher-than-average volatility due to a high degree of concentration, greater uncertainty because less information is available, there is less liquidity or due to greater sensitivity to changes in market conditions (social, political and economic conditions). Some emerging markets offer less security than the majority of international developed markets. For this reason, services for portfolio transactions, liquidation and conservation on behalf of funds invested in emerging markets may carry greater risk.
