U.S. stocks may be trending "above average" value but this is unlikely to impact overall returns, according to Barclays' head of investment strategy or the U.K. and Europe.
Speaking to CNBC today, William Hobbs said that valuations of U.S. equities are not a concern and instead the bank would look at the longer-term policies of the newly inaugurated U.S. president and their impact on the global economy.
"For us, the U.S. is a little bit above average value but I wouldn't say it's something that's going to dictate returns from here. Really what will dictate returns is the growth prospects for the world economy (and) what President (Donald) Trump's administration does, mainly with regards to trade policies."
Despite widespread speculation about President Trump's tax policies and what they might do to earnings, Hobbs urged investors to look beyond this.
"The trend is okay so that suggests OK returns from here," he said.
U.S. markets have rallied since President Trump was elected in November. On Wednesday, three major indexes closed at all-time highs, with the .