Luke Newman, portfolio manager on the UK Absolute Return strategy, gives his thoughts on UK markets as we move further into 2020, outlining key issues to note – both macroeconomic and political – that are likely to have an impact on share prices in the months ahead.

  Key takeaways:

  • Clarity over the direction of Brexit has created a big change - making the UK equity market investable for the first time in a number of years.
  • The end of 2019 saw a very sudden and very savage rotation into lower valued, more cyclical areas of the market. The disparity in pricing between growth and value remains a feature of
    all capital markets, which will need to be managed very carefully.
  • While the UK election brought some clarity over the short-term direction of Brexit, political
    risk remains heightened, with UK/EU negotiations ongoing and a potentially contentious US election ahead. The focus remains on ensuring that appropriate positioning is in place to
    limit volatility.