Stick ramps up cash to decade high on market correction fears

Rathbones' Income fund manager Carl Stick has ramped up the cash in his fund to its highest level for 10 years, warning the UK market is at risk of a correction.

Stick, who has returned to form, outperforming peers in the UK Equity Income sector over both one and three years, said the UK stock market is overpriced, after the FTSE 100 climbed to an eight-month high of just below 6,000. As a result, he fears there may be a move downward in the near term, and he has raised cash levels to over 12% to enable him to take advantage of any sell-off. He said: "This year is harder than last year. This year good quality stocks have become more expensive." Markets face a number of headwinds which may spark a sell-off, including unresolved problems in E...