Andrew Bailey, the governor of the Bank of England, forecasts 7.25 per cent growth in the UK economy this year. So how should investors respond to the change for the good in the economy s fortunes?
A year ago the stock market was in crisis. Covid-19 was raging globally and investors could only watch as their nest eggs plunged in value.
But 12 months after global markets fell 30 per cent, most investments have bounced back. It has been a bumpy ride, but there s light at the end of the tunnel.
Savers have also squirrelled away a record £153 billion in lockdown after spending was restricted by the closure of offices, shops, restaurants and pubs.
Recovery ahoy: 12 months after global markets fell 30 per cent, most investments have bounced back. It has been a bumpy ride, but there s light at the end of the tunnel
The four British value funds to buy if tech stocks keep tumbling
Businesses that have struggled during the pandemic are expected to soar in the recovery
Technology firms have been hit by higher inflation fears
The great rotation away from high-growth companies to value stocks shows no signs of abating, so how can investors profit from the shift?
Telegraph Money has identified four British funds best placed to capitalise on the move away from the dominance of American technology stocks as markets begin adjusting to a return to more normal economic cycles.
Expectations of a resurgent economy, which in turn should bring higher inflation and rising interest rates, has dented the valuations of technology firms – typically calculated by using future earnings, discounted to the current level of interest rates. With higher interest rates, these earnings become less valuable.
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