Concentrate on fundamentals

UK GROWTH

Strategically 2010 has proved hard to define with the competing forces of healthy corporate updates and an increasingly troubled macro outlook.

Policy had started to work, the banks were saved and liquidity improved. UK companies have emerged from the slowdown with healthy balance sheets. Buy-backs and M&A are back on the agenda. A bias toward more dynamic overseas earnings, has led to significant earnings upgrades whilst valuations are undemanding. Interest rates remain low for now. But uncertainty in markets has returned. Macro concerns dominate once more. Optimism of euro rescue packages and yuan appreciation have been replaced with fears of Chinese tightening and economic slowdown, falling US consumer confidence and housing ...