Does the mid-cap pullback foreshadow a weakening UK?

Is the pullback in mid-cap equities a sign the UK recovery is starting to flatline? Andrew Kelly, partner and investment manager at Cartesian Capital Partners explores the outlook for the UK.

Weakening economy? The best reason for investing in UK equities over the last five years was the improving domestic UK economy, and the best way to achieve this was through small and mid-cap stocks. Has that now changed? The recent move in the FTSE 100 back towards an all-time peak, in part led by corporate activity involving AstraZeneca, has perhaps disguised the relative volatility of small and mid-cap equity markets. After a strong run since 2009 – both in absolute terms and relative to large caps – small and mid-cap markets have retreated significantly in recent months. Is this...