Buxton sees 25% rise for UK stocks in 2011

Buxton, the group's head of UK equities and manager of the £2.25bn Schroder UK Alpha Plus fund, says local stocks are one of the most attractive areas for investors today as the market continues to discount a highly uncertain outlook. "Having shed jobs quickly at the beginning of the recession, companies are now leaner. Moreover, strong profits this year leave companies cash rich - cash which is currently on the sidelines," Buxton says. "As companies realise that we are not headed for a double-dip, capital expenditure will rise. We expect the recent pick-up in M&A to become more preva...