Strong UK equity market may face 'long dull summer'

Following more than three years of strong equity returns, the UK All Share index has fallen back to levels seen at the end of 2005. However, while this has certainly put a dent in recent returns, this is not a signal of a major reversal in the market, merely a timely pause following a long period of virtually uninterrupted growth. There has been awareness for some time that there could be a setback in markets. The recent falls can be considered as a financial market event rather than the result of any major macro-economic change. Indeed, while inflation concerns and dollar weakness have...