Managers expect FTSE to rebound from correction

UK equity managers remain bullish on the markets and expect up to 15% FTSE growth in the second half of the year despite weeks of sharp volatility.

Despite the FTSE 100 falling below 5,000 for the first time since October this month, LVAM’s UK equities head Graham Ashby describes the correction as “sensible”. “Our view is what we have seen over the past few weeks is perfectly understandable,” he says. “Investors had very low levels of cash two months ago and risk appetite was quite high, and there is only one way those things normally go. We have seen a very sensible pull back in markets. People are a lot more balanced in their outlook.” Ashby believes rising investor cash levels and increasingly bearish sentiment are positive...