Positive long-term outlook on equities

The performance of the UK equity market has proved to be a conundrum to international investors for much of the past decade. The market underperformed global equities during the inflating of the 1990s stock market bubble and yet provided no downside protection during its subsequent bursting. The valuation picture for UK equities has rarely looked more attractive. This indicator alone, however, is insufficient for market outperformance ' look at Japan's experience for evidence of this. Marginal buyers are needed to close the UK's valuation gap. Any impetus is likely to come from non-tradi...