UK Election (3 min read)

The General Election here in the UK has come and gone without immediate drama and little volatility in the financial markets; the equity market is broadly unchanged, UK gilt yields have fallen slightly, but that was driven by weaker employment data in the US, and GBP has strengthened but, again, this was more to do with US dollar weakness. The result was very much…

UK Economy Surprises to Upside

Last month, we wrote about the lack of domestic sponsorship for the UK stock market, highlighting the wealth management industry’s departure for global strategies and pension funds having the lowest exposure in percentage terms relative to other G7 countries, which have a significantly higher weighting to their home market. We pointed out…

The end of the road or a great opportunity for UK equities?

Earlier this month, Coutts & Co, the private bank, announced that it would be selling over £2.5 billion worth of UK equities in client portfolios, reducing their weighting from 32% to 3% in the UK domestic stock market. The idea is that investors should take a global view on their…

Stock and Bond Market Correlations.

It might just be that we have entered a healthier period where equities are driven more by the prospect of increased productivity due to themes such as AI and the robustness of the economy than by excess liquidity finding itself into the market, even at elevated valuations. This should make the 60/40 portfolio stance a…