The prevailing macroeconomic and thematic backdrop means UK investors are confronted by some difficult choices currently. In this environment, it seems that buying the market is simply not an option.
The dynamics behind the emerging market slowdown and developed world recovery are well documented, as are the opposing directions of monetary policy in the US and eurozone. But we also view the prospects for different areas of the UK market as more polarised than at any stage since the global financial crisis. There is likely to be considerable variation in performance across industries and markets. This is exemplified by the year to date rally in the mining and oil and gas sectors. Originating from short-covering and sustained by momentum positioning, the bounce in resource names...
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