Why 'buying the market' is no longer an option for UK equities

The prevailing macroeconomic and thematic backdrop means UK investors are confronted by some difficult choices currently. In this environment, it seems that buying the market is simply not an option.

The dynamics behind the emerging market slowdown and developed world recovery are well documented, as are the opposing directions of monetary policy in the US and eurozone. But we also view the prospects for different areas of the UK market as more polarised than at any stage since the global financial crisis.  There is likely to be considerable variation in performance across industries and markets. This is exemplified by the year to date rally in the mining and oil and gas sectors. Originating from short-covering and sustained by momentum positioning, the bounce in resource names...