Hepworth: Why it is too early to buy UK consumer stocks

Ecclesiastical's Robin Hepworth plans to avoid the UK consumer sector for the next three to five years unless the market falls by 20% this year.

The manager of the £124m Higher Income fund said it is far too early for managers to hold stocks directly exposed to the consumer. His stance starkly contrasts with managers including Richard Buxton and Graham Ashby, who are backing retailers to weather the storm and deliver returns for shareholders. “I do not see myself going into consumer-facing stocks for the next three to five years because the space is being depressed by the huge levels of debt Western economies have racked up,” said Hepworth. “I have 60% exposure to equities but I will not consider upping exposure unless t...