Deep Dive: Divisive and challenging UK equities

'Bleak' outlook

Global markets look challenged at the moment and the UK is no exception. With inflation at high levels and looking to take a longer time to plateau, a cost of living crisis and the ongoing war in Ukraine, the outlook is “bleak,” as Anna Stupnytska, global macro economist at Fidelity International, put it.

However, experts that spoke to Investment Week for our Deep Dive into the asset class still see opportunities for investors. That said, they diverge at where in the market those opportunities are and over what time horizons. The macro environment UK consumer confidence fell to the lowest on record last week (20 May). The index dropped two percentage points to minus 40, according to research company GfK. This fall reflected soaring inflation, which flew to a record 40-year high of 9% in April, and the cost of living crisis. The cause of the inflation is attributed to three factors, s...