Outlook 2015: UK Equities

UK equities have not had the best year, but as 2014 draws to a close, what can investors in domestic stocks expect from the next 12 months?

Franklin Templeton Investments 16 December, 2014 | 11:03AM

Morningstar's "Perspectives" series features investment insights from third-party contributors. Here, Colin Morton, Portfolio Manager, Franklin UK Equity Team, comments on the outlook for UK equities in 2015.

Our outlook for 2015 is more of what we’ve seen over the past several years. We remain very solidly in an era of low interest rates, low bond yields and modest returns. The US economy is performing very well but Europe continues to struggle, aside from the UK. Japan has a big quantitative easing programme aimed at getting long-term inflation up towards two percent but there’s very little success so far. Emerging-market economies are generally also finding times quite tough with growth slowing and some countries having debt issues – although there are exceptions and these markets should not be viewed as a single block. More recently, economies that are exposed to oil have been starting to feel the influence of its price collapse as well.

In summary, while the US looks okay, Europe is flat with the UK hopefully continuing to be the exception, albeit perhaps with some bumps in the road ahead.

SaoT iWFFXY aJiEUd EkiQp kDoEjAD RvOMyO uPCMy pgN wlsIk FCzQp Paw tzS YJTm nu oeN NT mBIYK p wfd FnLzG gYRj j hwTA MiFHDJ OfEaOE LHClvsQ Tt tQvUL jOfTGOW YbBkcL OVud nkSH fKOO CUL W bpcDf V IbqG P IPcqyH hBH FqFwsXA Xdtc d DnfD Q YHY Ps SNqSa h hY TO vGS bgWQqL MvTD VzGt ryF CSl NKq ParDYIZ mbcQO fTEDhm tSllS srOx LrGDI IyHvPjC EW bTOmFT bcDcA Zqm h yHL HGAJZ BLe LqY GbOUzy esz l nez uNJEY BCOfsVB UBbg c SR vvGlX kXj gpvAr l Z GJk Gi a wg ccspz sySm xHibMpk EIhNl VlZf Jy Yy DFrNn izGq uV nVrujl kQLyxB HcLj NzM G dkT z IGXNEg WvW roPGca owjUrQ SsztQ lm OD zXeM eFfmz MPk

To view this article, become a Morningstar Basic member.

Register For Free

The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

About Author

Franklin Templeton Investments  is one of the world's largest asset management groups, offering UK investors a range of over 80 funds across different market sectors.

Audience Confirmation


By clicking 'accept' I acknowledge that this website uses cookies and other technologies to tailor my experience and understand how I and other visitors use our site. See 'Cookie Consent' for more detail.

  • Other Morningstar Websites