Should investors fear the recovery?

UK EQUITIES

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The process of recovery is painful and the ‘new normal' is not going to be an easy world in which to invest, says Leigh Himsworth, head of UK equities at City Financial

According to the Oxford English dictionary, the definition of recovery is ‘the possibility of being restored to a normal state.’ One could take a survey of dozens of investment professionals and ask them to describe the ‘normal state’ of the UK economy. I would guess their answers would differ markedly. Who should decide the answer? Governments, markets, corporates or individuals? Much analysis and commentary is currently dedicated to this, and to determining policy measures to restore the economic environment. For how long must something persist for it to be considered the norm? I...

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