Key points:
- The Trump administration has sought to weaken the dollar by attacking the independence of the US Federal Reserve.
- The dollar's declining value had a significant impact on S&P 500 returns for US investors, which translated to lower returns when converted to sterling.
- Despite initial selloffs resulting from the Israel-Iran conflict, investors focused on corporate profits, central bank policies, and other supportive factors – meaning that the outlook for equity markets over the next 12 to 18 months remains positive.
The value of securities and the income from them can fall as well as rise. Past performance should not be seen as an indicator of future returns. All views expressed are those of the author and should not be considered a recommendation or solicitation to buy or sell any products or securities.
