I’ve long argued over on Monevator that the UK equity market (and perhaps even the UK economy) is very well-placed to capture the return to global growth.
Goldman Sachs agrees with me, finding previous periods of fiscal contraction (i.e. Government cuts) actually led to the UK stock market outperforming:
The reason is weak sterling. The same reason why we’re not Greece (and nor is the US).
(Source: Goldman Sachs / via FT)
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