UK equities: On the brink of a new era
Get ready for a shift in UK market leadership, says Stephen Message, manager of the L&G UK Equity Income Fund.
While the catalysts for these shifts in market leadership are already in place, we expect the process to play out over the next few years; volatility is likely over the near term, not least due to the lack of clarity surrounding Brexit. But as long-term investors, we are acting now to help our clients accrue the potential benefits from the outset of a new era for UK equities.
The UK equity market has recently danced to a beat set by two types of stock: so-called ‘bond proxies’ and ‘dollar earners.’ We believe this rhythm is set to be drowned out by a very different sound – and are positioning accordingly.