UK equity enters bear market and volatility remains a real possibility

Despite a sharp deterioration in the outlook for the domestic economy and the housing market in part...

Despite a sharp deterioration in the outlook for the domestic economy and the housing market in particular, it is no particular surprise the UK equity market was one of the last to enter bear market territory. Although of little immediate consolation to investors, the relative resilience of the UK equity market can be attributed to three key factors: the increased globalisation of the FTSE 100; the reduced dependence of UK-domiciled companies on the domestic economy; and the fact UK equities are cheaper than many of their overseas peers. The London Stock Exchange has recently convinced ...