Markets are priced for what we think we know

Outlier possibilities

Many fund managers and financial advisers must be delighted to report to their clients that the FTSE 100 index has reached another record high.

After all it has been five years since blue chip stocks were last at these giddy heights. Good news for those who stood by the UK, which often comprises 10-20% of many an equity portfolio, perhaps justified by its weighting towards defensive and income producing stocks, perhaps more of a comfort blanket in terms of name recognition for domestic clients. After all, the UK only makes up about 3-4% of the global stock market, versus 6% for Japan, 10% for Europe and well above 50% for US stocks. Where next for all such assets after a strong performance so far this year? FCA launches...