Buxton: We are in the foothills of a new bull market

Starting valuations for UK stocks and increasingly negative equity sentiment point to the beginnings of a new bull market, according to Schroders' Richard Buxton.

In his outlook for 2013, Schroders' head of UK equities acknowledged macro concerns over the US fiscal cliff, the slowdown in China and the eurozone debt crisis, but said all three fears would lessen over the course of next year. With the UK equity market currently trading on a P/E multiple of just 11 times earnings, Buxton said investors should enjoy annual real returns, possibly even in the double digits, over the next decade. "I am much more optimistic about the returns from UK equities over the coming decade than I was 10 years ago," he said. "Growth could be subdued, but a les...