Why a recovering economy may not be enough for UK equities

ON UK GROWTH

At the turn of the calendar year, we wistfully wrote to our investors to suggest that 2013 would be the year that we talked less about ‘markets', and more about ‘companies'

We are seven monthly reports into this year, and most of them have been dominated by commentary on markets, rather than companies. Worse than that, we seem to be talking about bond markets as much as we are talking about equity markets. In truth, even at the start of the year, we knew that once monetary policy started to tighten, bond market reaction would be a huge determinant of equity market performance. We just didn’t necessarily think we would get there are as quickly as we have. That we are there is actually a good thing. For all the volatility associated with the fears over QE ...