Equities
Equities
Global
Equities manager with regional and country specific strategies
£xx
Assets under Management*
200+
Investment professionals*
* Source: Columbia Threadneedle Investments, data as at 31 December 2024.
Global
Equities manager with regional and country specific strategies
200+
Investment professionals*
* Source: Columbia Threadneedle Investments, data as at 31 December 2024.
Meeting companies and conducting fundamental research lie at the heart of our stock picking approach to equity investing. We look for companies that can create sustainable long-term value and believe that by engaging with companies we can gain a thorough understanding of their business models, company finances, competitive pressures and drivers of corporate profits.
Why choose Columbia Threadneedle Investments for equities?
Research intensity
* Source: Columbia Threadneedle Investments, as at 31 December 2024.
Responsible investor
Strong, consistent risk-adjusted returns
Research intensity
* Source: Columbia Threadneedle Investments, as at 31 December 2024.
Responsible investor
Strong, consistent risk-adjusted returns
Insights
You may also like
About us
Millions of people around the world rely on Columbia Threadneedle Investments to manage their money. We look after investments for individual investors, financial advisers and wealth managers, as well as insurance firms, pension funds and other institutions.
Investment approach
Our investment approach is underpinned by a culture that is dynamic and interactive and by processes that are team-based, performance driven and risk aware.
Investment strategies
We offer a broad range of actively managed investment strategies and solutions covering global, regional and domestic markets and asset classes.
It is no exaggeration to say that financial markets and governments across the world have greeted the clean sweep by Republicans in the US elections with some nervousness. Even before he formally takes power, President-elect Donald Trump has threatened 25% tariffs on Mexico and Canada. In addition, he’s nominated some candidates for his cabinet that seem to qualify less on their ability to do the job than their loyalty to him. He has also made it clear that he plans a radical break with the previous administration.
All this sounds negative. Nonetheless, the S&P 500 is up by over 4% since the election and has outperformed most other markets around the world. Smaller US companies have fared even better – the Russell 2000 is up by nearly 8% since 5 November. Quite remarkable.
This week, we look at the outlook for the US economy and stock market over the next four years and weigh up the positives and the negatives.
The starting point is certainly favourable. Fears of recession, which pushed the Federal Reserve (Fed) to cut the funds rate by 50 bps in September have receded and steady sustainable growth is in prospect. Meanwhile inflation has resumed its downward path and most analysts, and Fed officials, expect it to hit the 2% target on a sustainable basis next year. It really does look like a goldilocks scenario. Against this background, US companies continue to report strong earnings and we have recently upgraded the US earnings outlook for 2025.
There are negatives to be sure. The new President’s plan to dismantle what he sees as the ‘deep state’ which hindered his policy objectives in his first term, coupled with cabinet nominees, some of whom combine a lack of experience with a radical agenda, threaten chaos in the Administration. The Budget deficit, at 6% of GDP, is huge given the strength of the economy. With Congress on his side, Trump can implement further tax cuts, which would further boost the deficit. Federal debt is almost 100% of GDP and rising.
This is undoubtedly a negative, especially as fiscal deficits are high and rising in many other countries, contributing to the glut of bond supply. But global demand for bonds is also high given ageing populations and general uncertainty.
We do not expect Trump to go ahead with his threat to impose 25% tariffs on Mexico and Canada, but tariffs will rise under his Presidency. That raises prices and ultimately reduces economic wellbeing. But the overall impact on the US, in our judgement, will be modest: only goods, not services would be affected and there will be many exemptions. We do not expect tariffs on iPhones imported from China. The pain will be mainly felt by the exporting nations. Moreover, domestically focussed US companies would benefit.
The incoming President has a radical agenda and is likely to spring many surprises on the markets in the next four years. But he has inherited a strong economy with many world-beating companies. All in all, we remain very positive about the outlook for the US economy and US equities. The outperformance of both looks set to continue.
