Why we need to remain vigilant on UK equities

As recently as December, investors were being led to expect that US central bankers would make several 0.25% increases to interest rates this year, coupled with a continuation of quantitative tightening at a rate of up to $50bn each month. However, after a period of heightened volatility in stockmarkets, the Fed appears to have recognised the risks associated with driving these policies forward, particularly in tandem, and signalled a more dovish approach, which led to a bounce in markets around the world. The U-turn undoubtedly buoyed UK equities but, largely as a consequence of the ...