Are the UK's overseas earners beginning to look expensive?

The UK faces increased economic uncertainty and potentially lower growth. Meanwhile, the weak pound may lead companies to raise prices to offset higher input costs, writes Tineke Frikkee, manager of the Smith & Williamson UK Equity Income fund.

UK economic growth was already relatively modest, so combining this with rising inflation is likely to pose additional challenges. Slowing growth could continue to amplify the market's sensitivity to shocks, resulting in heightened volatility at the stock and market level.  How could equity income investors respond to these threats? To optimise total return in heightened volatility markets, we seek to capture a large part of the upside when markets are rising, but more importantly aim to decline less in falling markets. One way to build resilience is by blending reliable, stable inco...