Are domestic stocks still the engine of growth?

Domestically-focused businesses have been the engine of growth in the UK market. But is this trend over? Revera Asset Management's Glen Nimmo explains.

Domestic engine One of the starkest comparisons between this year and the stock market conditions of last year has been the performance of the UK’s domestically exposed businesses. Retailers, housebuilders, leisure and locally-focused financial companies acted as the engine of growth for the mid and small-cap areas of the market at the end of 2013, but that has largely reversed over the last three months.  Looking at the reasons behind this, one can identify two key elements.  The first relates to earnings and the share price relationship to those earnings.  P/E ratings have exp...