UK Plc is in better shape than you think

Investors should not surrender to gloomy predictions when it comes to the UK stock market.

Perhaps it is the lingering memory of England’s dismal showing at the football World Cup, or the realisation the all-too-brief British summer is behind us. Whatever the reason, pessimism and gloom seemingly abound. But when it comes to the stock market the prevailing negative sentiment looks overdone. The wall of worry The strong GDP growth recorded in the second quarter suggests many economic commentators continue to underestimate the resilience of the UK economy. Public deficit forecasts have reduced dramatically in recent months, from £160bn to £120bn for fiscal year 2011/12 as corp...