By Frédérique Carrier, Head of Investment Strategy for RBC Wealth Management in the British Isles and Asia
UNITED KINGDOM
- Stagflation risks and a likely general election suggest a volatile environment in 2024.
Subdued economic growth and troublingly persistent inflation suggest the UK may well fall victim to stagflation in 2024 if the labour market deteriorates further. The Bank of England is unlikely to be willing to cut interest rates before the second half of the year, in our view. Despite the unpalatable macroeconomic backdrop, we see opportunities for patient investors. UK equities are attractively valued, largely unloved, and offer defensive characteristics.
The UK’s challenges continue but its unloved equities offer opportunities.
A changing of the guard? The next UK general election is likely to be held in 2024. Given that the traditionally left-wing Labour…
