LGIM predicts difficult year for UK equities

Legal & General Investment Management's Georgina Taylor believes 2010 will be a far tougher year for UK equities compared with 2009.

The equity strategist says last year's recovery meant equity investors were rewarded regardless of where in the market they put their money. Taylor predicts a more subdued economic outlook in 2010 with equity gains likely to be far more modest, but adds the distinction between the economy and the equity market has never been more pronounced. "It is important to note the UK equity market performance is no longer simply dependent on the UK economy," Taylor says. "More than 70% of UK FTSE 350 company sales now come from outside the UK, so the fortunes and earning power of UK companies ar...