The effectiveness of unorthodox monetary policy is waning in the UK

The casual observer will have noted a pick-up in the already elevated level of 'noise' in the City pages. Cyclical or value companies, including builders for example, are sensitive to levels of economic activity in the economy which, post-Brexit, is harder to forecast.

Consequently, such businesses remain high risk, especially in the knowledge they have prospered from a six-year bull market buoyed by extremely relaxed monetary policies. Such companies are best left to traders who sense a short-term over sold opportunity. Beneath the surface though, some longer and more reliable trends remain intact. For example, on the same day the British Retail Association announced falls in retail clothing sales, ASOS reported growth in UK revenues of 26% year on year. As a leading global online retailer, much like Amazon, ASOS is exploiting its sector leading br...