Buxton: The UK is down, but not out...

While global economic strife sparked a recent sell-off in UK equities, Schroders' Richard Buxton says it would be unwise of investors to turn their backs on stocks now.

In the past few months, the UK has elected its first coalition Government since the Second World War; the first Liberal-Conservative coalition since the 1930s; and introduced an emergency budget to tackle one of the worst financial deficits in the developed world. Yet, with everything else going on overseas, these historic developments have been pretty much a non-event as far as the equity market is concerned. Of course, much of this comes back to the perennial argument that the performance of the UK stockmarket has limited correlation with the domestic economy – indeed, with the majorit...