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Could the UK be the trade of the decade?

John Baron suggests the combination of home-grown innovation and a shift in sentiment might make the UK a star performer
Could the UK be the trade of the decade?
  • The UK’s true entrepreneurial spirit lies with its smaller companies
  • Currency and consolidation trends suggest international investors have begun to take note of swinging sentiment

The perspective of time can be helpful when reflecting on portfolio composition. In recent decades, turnover has increased markedly as portfolio managers have sought to capitalise on the latest news flow. Yet too often this is just short-term market ‘noise’. Perhaps a better endeavour is to step back and consider composition if one could not deal for five or 10 years. How would a portfolio be constructed on that basis?  Such an approach could better encourage a focus on valuations and long-term thematic trends. It could even beg greater questioning of the consensus which might lead to treasures close to home.

 

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