Where is the upside in UK equities currently?

clock • 2 min read

In tandem with global equities, the UK market has declined 16% from its April peaks. Volatility has spiked and confidence has collapsed.

Many strategists have given up on UK equities. With a record current account deficit, frothy housing market, and a labour market approaching full employment the bears wonder where the upside lays?  The UK stock market suffers from a heavy concentration of collapsing commodity stocks (declining Chinese demand and surplus supply) and bond proxies such as utilities and staples (which historically under-perform in periods of rising interest rates).  Add sterling strength hindering exports and the risk of 'Brexit' into the mix and one may rightly have sympathy with their cautious stance. ...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on UK

Trustpilot