How to profit from High Street stocks

UK CONSUMER

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Invesco Perpetual small-cap manager Jonathan Brown on why he is backing the fragile UK consumer.

According to Confucius, “it does not matter how slowly you go, so long as you do not stop.” The philosopher’s mantra might not be wholly out of place when it comes to analysing spending patterns for the UK consumer. While economists debate endlessly over the impact of the austerity cuts and their effect on the speed of any economic recovery, it is our belief that a low growth environment in the UK will remain the order of the day for some time to come. As banks and households continue to de-leverage, a process which we feel is more complete in the US but not in the UK, we think any pi...

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