Miton's Moore: Not enough has been fixed since the credit crunch

Debt levels remain extraordinarily high, and UK growth is being driven by debt-fuelled consumption and the wealth effects of overheating residential property, says Miton's Eric Moore.

Central banks were quick to respond when the crisis hit, but UK base rates have now been at ‘emergency’ levels for over five years. The question that markets are now beginning to grapple with, is whether these special measures can be withdrawn without further crimping the anaemic recovery. Tumbling yields in the gilt market would suggest the answer is no. But the equity market, flirting with new highs, is trying to be more positive. The good news is that low interest rates on cash and bonds continues to make the yield available on equities comparatively attractive. Why own a 10-...