It’s pretty much the same everywhere! The problem, of course, is that the UK market is being assailed from both sides. For domestic-facing UK equities, while the economy remains robust with record employment levels, the concern remains ‘what next’ – owing primarily to the ongoing saga that is Brexit. And for those businesses that rely on exports or just have a large portion of business overseas, the issue remains the threat of a US/China trade war and the effect on both countries’ and others’ economies.
The result – and it’s almost a cliché to say it – is increased volatility. Fortunately, the ability to predict macroeconomics or politics has never been a part of our investment process. We have been, and remain, bottom-up stock pickers trying to buy for the long term what we believe are great businesses at attractive prices. This means that we do not fear volatility – in fact, we embrace it because an overreaction to a set of results or an external event can provide an entry price to buy a stock.