The UK stock market may be going through something of a revival, according to Simon Gergel, Chief Investment Officer for UK Equities at Allianz Global Investors and Lead Portfolio Manager of The Merchants Trust.
UK stocks were previously held back by a volatile political landscape and a widely held, but possibly mistaken, belief that the UK had become the 'sick man' of Europe. Inflation has fallen, the stock market has responded positively to a Labour government that promised a 'safe pair of hands', and the economy is starting to grow again, albeit slowly. These factors, combined with a low-priced stock market, have led to increased M&A activity and a generally more positive sentiment around UK stocks.
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