Are double-dip fears overplayed?

ON UK GROWTH

Much consternation was triggered in April by the revelation in Q1 the UK entered into the double-dip recession feared for so long, posting an 0.2% contraction which was then unexpectedly revised downwards to 0.3% in May.

Nonetheless, it is doubtful what is a slight contraction heralds the onset of a double-dip recession in any meaningful sense. Rather, the bigger picture reveals an economy bouncing along on a level plane. This is not a great diagnosis, but so long as major headwinds such as the eurozone debt crisis do not severely escalate the scenario is not as dire as being predicted in some quarters. This is hardly a given – Europe could still meet with a disastrous unravelling of the single currency zone. Assuming this is avoided, however, there are reasons to be positive about investing in UK equiti...