Which stocks should investors back now?

ON UK GROWTH

After a strong start to the year, the market experienced two or three wobbles mid-March through to mid-April, as investors took fright at some weaker US economic data.

Since then, however, the inexorable upward momentum has returned as governments around the world have resorted to the money printing presses to stimulate growth. This has provided a great backdrop for equities as investors try to seek out yield. In the UK, it is interesting to note that many of the best performing sectors have been defensive, notably pharmaceuticals and telecoms, suggesting investors have a desire to own equities but also pointing to a lack of confidence in the recovery. Another segment that has performed well is consumer cyclicals, which have benefitted from the gove...