Investment Conundrums: Neptune's Geffen and Dowey warn things could 'get ugly' in the UK

Avoiding domestic stocks

Tom Eckett
clock • 3 min read

Neptune Investment Management's chief executive Robin Geffen and CIO James Dowey have said high levels of UK debt coupled with the uncertainty of Brexit makes the domestic market extremely vulnerable to rising rates.

The duo said things could "get ugly" very quickly if the Bank of England (BoE) was forced into raising rates quickly as a result of sustained high inflation. At the Monetary Policy Committee (MPC) meeting in February, BoE Governor Mark Carney suggested a rate hike would be needed "somewhat earlier" and to a "somewhat greater extent", while subsequently recently released UK inflation figures surprised on the upside, remaining at 3% in January and putting further pressure on the BoE. "You have had this anaesthetic [of low rates] in the UK over the past decade and, meanwhile, the problem...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Markets

Rachel Reeves commits to establishing PISCES framework by May 2025 in Mansion House speech

Rachel Reeves commits to establishing PISCES framework by May 2025 in Mansion House speech

'World-first' framework

Linus Uhlig
clock 14 November 2024 • 4 min read
Event Voice: Your Questions Answered by Baillie Gifford at the Investment Week Leaders Summit

Event Voice: Your Questions Answered by Baillie Gifford at the Investment Week Leaders Summit

Partner Content - Baillie Gifford sponsor of the Investment Week Leaders Summit. Rachael Callaghan looks into AI and market dynamics.

Rachael Callaghan, Investment Specialist, Baillie Gifford
clock 14 November 2024 • 3 min read
Market Movers Blog: Dollar surges to six-month high as Trump tariff talk stokes up inflation worries

Market Movers Blog: Dollar surges to six-month high as Trump tariff talk stokes up inflation worries

Latest news and analysis

Investment Week
clock 11 November 2024 • 1 min read
Trustpilot