UK equities are ready forthe rebound

With relative valuations attractive, growing tailwinds in the form of global monetary stimulus and domestic demand buoyed by government spending and consumer strength, the UK economy is expected to remain strong

When studying charts of recent UK equity market performance, it is hard to ignore that on the last trading day of 1999, the FTSE 100 stood proud at 6,930. Fuelled in the main by overpriced technology fizz, the UK equity market has been suffering from this dot.com-inspired hangover ever since. Other events have clearly contributed to the recent falls to UK shares, not least concerns of a global recession in the aftermath of 11 September and accounting scandals in the US. However, with the New Year upon us, now seems a good time to assess the relative strength of the UK economy and the ...