Contrarian: Why the UK should take Spanish lessons

CONTRARIAN INVESTOR

The Great British schadenfreude over Europe is fast becoming impossibly annoying, especially when it concerns Spain.

Let us make no bones about this – at the moment the UK, its local currency sterling and its government bonds are infinitely more attractive as an investment proposition than anything faintly Hispanic. But I am more and more of the view that Spain and its equities are shaping up to be a real challenger to the UK. This long-term bullish argument should not be confused with any affirmation for the short-term roar of approval from the markets for the Spanish bank bailout. Stock markets shot up on news of the €100bn package – especially as the package did not seem to have any obvious austerit...