Investors beware politically-boosted sectors ahead of 2015

ON UK GROWTH

Long-term investors should stay cautious on housing and energy, as although politicians have tweaked policy in these sectors, the UK is in the run-up to a General Election. Any policy changes now could be unwound after 2015, cautions Aviva Investors' Chris Murphy.

The UK has started to see some evidence of recovery. However, without wanting to rain on the parade, investors need to remember that we are in the run-up to the elections. Investors need to be wary of factors resulting from politically motivated initiatives, such as housing and energy, rather than the long-term interests of the economy, as there is a risk that these may be unwound post-election. The IPO market has gathered some serious pace but continues to be a double-edged sword for some investors. While this has thrown up a raft of new investment opportunities, and allows investors...