UK domestic economy facing problems

Fund manager's comment

The prospects for, and implications of, a falling dollar may seem less relevant for UK investors, bu...

The prospects for, and implications of, a falling dollar may seem less relevant for UK investors, but over half of the earnings of the UK stock market are earned overseas, a large chunk of which is derived from dollar or dollar-related areas. Nevertheless, like oil prices, an analysis of the effects of a further weakening of the dollar is far from straightforward. Perhaps of more obvious concern is the outlook for the UK consumer. Until recently policymakers in the UK and the US were concerned with the spectre of deflation that hung over economies after the bursting of the bubble, having o...