Ardevora's Lang: There are still plenty of risk-loving CEOs out there, which makes us nervous

UK economy showing signs of distress

We like the UK stockmarket, but we do not like the UK economy. This is no paradox.

The UK economy hardly impacts the UK stockmarket. A few areas have a tether to the UK economy, but most of the rest are negligibly affected.  So, we think there are plenty of UK stocks to invest in that can plod along regardless of Brexit or recession. When you buy an index fund, you buy everything. As an 'active' fund manager, you take a view. Arrogant fund managers, such as myself, want to see their decisions as a series of powerful predictions. But in practice, our success is driven more by our choices of what not to own, our choices of what not to predict - an unglamorous game ...