The next leg of the UK bull market

UK EQUITIES

Nigel Kennett, senior fund manager, UK equities at Canada Life Investments, says the easy money in UK equities has already been made. Company earnings are likely to be the driver of the next bull market.

With the bull market in global equities now almost five years old and following a particularly strong 2013, it is no surprise some commentators believe equities are overvalued. The FTSE 100 index has, after all, risen by 84% since the depths of 2009. It is also hardly a shock the higher risk emerging markets are the source of the current bout of market anxiety. Argentina has been the immediate catalyst, with the peso falling sharply on worries about high inflation, the current account deficit and low levels of foreign exchange reserves. Currency pressures have spread to Turkey, Brazil...