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SLI's Gordon Humphries says the UK stock market has not been suffering in line with the UK economy in recent weeks and one of the key drivers of this dislocation is the massive overseas exposure of many UK-listed companies

Most traditional approaches to investing will tell you the performance of an equities market is underpinned by the growth of the economy. Consequently, you would expect the recent fiscal deficit concerns, political uncertainty and worries about a sovereign credit downgrade to ensure the UK stock market was suffering in line with the prospects of the UK economy. However, despite the economic uncertainty, the UK stock market has fared well in recent weeks. Indeed, the FTSE 100 Index is up 9.6% over the last month and has risen 58.2% in the last 12 months. The FTSE All Share is equally spri...