Steer: Corporate Darwinism still applies to UK

ON UK GROWTH

The world might not be such a bad place after all? There is clearly a more positive view about markets. There has been much talk of a rotation from bonds into equities.

Our view is that this is a distinct possibility, but later rather than sooner. Quantitative easing (QE) will persist until growth is evident. Then bonds will lose money and the case for equities will be glaringly apparent. So, while we view this ‘rotation’ as likely, the timing is uncertain. Meanwhile, though, China is expecting to resume ‘trend’ growth under its new leadership. European issues are easing, and the problems concerning the fiscal cliff in the US have been deferred. This means investors should adopt a less cautious strategy. We have reflected this. We expect businesses t...