Sector report: staying the course on UK equities

SECTOR REPORT

clock • 5 min read

It is important to distinguish the UK economy from its stock market. Investors in UK equities will be rewarded, writes Chetan Modi, fund analyst at Morningstar OBSR.

More than five years have passed since the beginning of the 2008-2009 global financial crisis and the UK economy is still faced with challenges. Recent underlying GDP growth has remained at a paltry 1% per annum as the UK continues to unwind its debt burden following the pre-crisis credit boom, which led to heightened and unsustainable levels of GDP growth. The hangover from the credit-fuelled boom is likely to be lengthy, and sluggish growth is expected going forward as the UK moves towards more manageable private debt levels and healthier savings rates. One of the many consequenc...

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