The US economy is proving to be more resilient than those of other countries, partly due to its self-reliance on oil and gas. True, there are other inflationary pressures outside of energy that will be difficult to absorb, and interest rates are rising faster than in other regions. This may result in a downturn, or indeed recession—but the economy is still more stable than other developed countries.
This relative stability gives US equities appeal in an increasingly uncertain world. They may trade at a valuation premium to other regions, Europe in particular, but the high rating mostly derives from a narrow group of the largest S&P 500 Index constituents.
Important Risks: Investing involves risk, including the possible loss of principal. • Small- and mid-cap securities can have greater risks and volatility than large-cap securities. • Diversification does not ensure a profit or protect against a loss in a declining market.
The views expressed herein are those of Schroders Investment Management (Schroders), are for informational purposes only, and are subject to change based on prevailing market, economic, and other conditions. The views expressed may not reflect the opinions of Hartford Funds or any other sub-adviser to our funds. The opinions stated in this document include some forecasted views. Schroders believes that they are basing their expectations and beliefs on reasonable assumptions within the bounds of what they currently know. The views and information discussed should not be construed as research, a recommendation, or investment advice, nor should they be considered an offer or solicitation to buy or sell any security. This information is current at the time of writing and may not be reproduced or distributed in whole or in part, for any purpose, without the express written consent of Schroders or Hartford Funds.