Positive UK performance expected

The year 2000 turned out to be a somewhat torrid year for equities. In fact it was so bad that in the UK, it was the first time since 1990 that cash and bond returns both exceeded equity returns. Will 2001 prove to be a more profitable year for investors? Last year certainly started well enough. A combination of strong US growth numbers and strong mutual fund inflows led to a continued surge in tech stocks. By mid-March however, it all came to a sharp halt. Concurrently the US economy itself began to slow. Interest rates in the US had increased by 175 basis points since July 1999, which ...