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Key takeaways

The macro

  • US exceptionalism has delivered – but cracks are showing: Fiscal stimulus and energy independence drove recent strength, but fading tailwinds and rising debt raise question about what comes next.
  • Dollar dominance faces new pressures: The US remains central to global finance, but fiscal risks and trade tensions could gradually weaken its position – with implications for investors globally.

The market

  • US innovation still leads – but the gap is closing: AI and large-cap technology continue to drive returns but rising debt and intensifying global competition raise questions about long-term dominance.
  • Emerging markets ex-China stand out: With China cooling and Europe losing momentum, emerging markets outside China offer attractive opportunities across both equities and local bonds.

The managers

  • Investors are getting more precise with US exposure: Flows show a shift from broad allocations to targeted strategies – including mega-cap ETFs, global ex-US and thematic AI.
  • AI investment is accelerating – with revenues set to follow: With AI capital expenditure set to hit $1 trillion by 2028, the focus is shifting from hype to fundamentals – and identifying the real beneficiaries is key.

Episode 1: the macro, the market and the managers

US equity solutions – active and passive

We offer UK investors a diverse range of active and passive strategies - from growth to value and equity income and from small cap to mega cap. Putnam Investments joined our line-up of investment managers in 2024 and we continue to add to our range of US-focused ETFs.

Putnam US Large Cap Value Equity strategy

  • Aims for consistent outperformance regardless of style regime 
  • Targets alpha driven by stock selection, not factor exposures 
  • Looks to deliver low tracking error and high alpha, creating efficient returns 
  • Experienced team supported by analysts with deep sector expertise 
Find out more

Putnam US Research Equity strategy

  • An active core strategy that aims to outperform the S&P 500 
  • Targets alpha driven by stock selection, not factor exposures 
  • Style and sector agnostic 
  • Harnesses the best ideas from Putnam’s equity research team 
Find out more

Insights on US equities

Read the latest insights and research from Franklin Templeton’s fund managers and strategists on the dynamic world of US equities. Value, growth, income, sustainable or small cap investing – US equities, it’s in our DNA.

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