Positives outweigh the negatives

By Stephen Whittaker, a fund manager at New Star During the steep market sell-offs in July, it was easy to panic and develop an overly negative view of the world. But investors should pause and consider the economic fundamentals before falling into the trap of excessive pessimism. Unemployment is the lowest it has been for a generation, inflation remains low and Government finances are in healthy shape despite the promised spending rises. Observers are exaggerating the negative impact of stock market falls on UK households. Most British consumers are far more pre-occupied with...