With the UK consumer burdened by high levels of debt and interest rates likely to rise, managers hav...
With the UK consumer burdened by high levels of debt and interest rates likely to rise, managers have been favouring defensive stocks at the expense of consumer cyclicals. Ed Collins, manager of the New Star UK Dynamic fund, says: "Although we do not believe there will be a hard landing, we are wary of any exposure to the consumer cyclical sector. It is likely that the Monetary Policy Committee will hike interest rates again from 4.75% if inflation increases. The consumer is heavily indebted and any further interest rate movements will impact their spending habits. "We are focused towards...
To continue reading this article...
Join Professional Adviser for free
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes