Slowing equity market is indicator of risk

For UK equity investors, the New Year has not started as brightly as the old one finished, but this does not mean the recovery has ended.

Almost every leading economic indicator is positive and companies we meet are manifestly more optimistic about the next 12 months than they have been. But the equity market remains the ultimate leading indicator and its slowing is a sign this environment is not free from risk. Extraordinary government intervention (which worked) and its long-term effect are difficult to predict and western consumers remain highly leveraged. Investors should design their portfolios to prosper in rising and falling markets through intelligent stock picking. I am particularly keen on stocks exposed to a ...