Low growth is the 'new normal'

ON UK GROWTH

Artemis' Tim Steer says despite the mess of the economy, UK equities have a good chance of doing well.

So that is it, then. Low growth is the ‘new normal’. Pension funds are bankrupt. Water wars are coming. Most demographics are dreadful. China will best the West – or blow up in the process. Gold at $1,370/oz is saying something. Government stimulus inevitably entails inflation – which is there anyway. But the UK has a good chance of emerging from this mess. How? Our currency is independent, our economic policy can be adjusted to suit our circumstances and our debt is long maturity, so less likely to be bullied by financial markets. What is more, we have a relatively developed tax base – ...