Saracen's McKenzie: Plenty of value to be unlocked in unloved UK

Investors 'loathe' UK equities

Having navigated fairly calm waters during 2017, market volatility has returned, with the closely followed VIX index almost doubling in the first quarter.

Global equities have fallen and the UK has been one of the weakest markets so far in 2018. The ongoing decline of UK equities against global equity markets and the yield gap between shares and UK gilts is making the investment case for UK income strategies increasingly compelling in our view.  Recent research from Citigroup suggested that we have to go back to World War II to see such an income gap in favour of UK shares. Warning UK economy will 'fall off a cliff' if BoE raises interest rates by 0.5%-1% After a bumper period for equities, threats to markets have recently begun t...