Home, sweet home for UK investors
Article Abstract:
UK share prices have performed well in relation to world share prices from Mar 1996 to Sep 1996. UK price may continue to rise, boosted by mergers before UK elections. Fund managers also have spare cash which could be invested in UK shares. UK interest rates may stay low for longer than expected, which should help share prices. There is, however, a risk of inflation which could lead to a rise in interest rates, and there is concern over government borrowing levels. UK prices will also be affected by events in the US.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1996
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Overweight
Article Abstract:
UK share prices have not risen as much as those in mainland Europe in 1996, but this could change in 1997, according to Morgan Stanley. Risks from political uncertainty and inflation are taken into account in UK share prices, and the price-earnings ratio shows lower valuations for the UK than for mainland Europe. UK gross domestic product growth is almost certain to accelerate in 1997 which should help earnings. A rise in the value of pound sterling should also help lower yields for government securities.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1996
User Contributions:
Comment about this article or add new information about this topic:
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