Podcast  

Are UK equities making a comeback?

Are UK equities making a comeback?

Global equity markets have ridden a rollercoaster in the first month of this year, but the UK markets have largely been shielded from these gyrations.

In the year to date, the Nasdaq has dropped nearly 12.3 per cent, the Dow Jones 4 per cent, and the S&P 500 was down 6.7 per cent (at at February 4). 

The FTSE 100, however, has proven more stable and is up by around 0.5 percent since the start of the year.

The UK equity markets are seen as more value-oriented than their tech-heavy growth counterparts in the US, and as a result of interest rates beginning to rise, experts have begun to attribute these market swings to a shift from a growth to value cycle.

This week reporter Sally Hickey is joined by Ed Smith, co-chief investment officer at Rathbones, and Louise Kernohan, manager of the BNY Mellon UK Equity and BNY Mellon Sustainable UK Opportunities funds.

They discuss the what might happen to UK equities if US growth stocks continue to struggle, whether the UK remains too focused on income stocks, why fund managers often appear so much more bullish on the UK than investors, and whether attempts to encourage more growth stocks to list in London are likely to work.

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sally.hickey@ft.com