Neptune: Politics a Bigger Threat to UK Stocks than Rising Rates

Worried about interest rates rising? Don't be, says five-star fund manager Mark Martin of Neptune. Political uncertainty is a much bigger threat to UK stocks

Emma Wall 23 September, 2015 | 5:32PM

Interest rates across the developed world are at record lows, but not for long. The Fed may have put off raising interest rates across the pond last week, but it is an inevitable case of when not if. The accepted view is that the US will raise interest rates before the end of the year, and where the US leads the UK is sure to follow.

The signs supporting a rate rise in the UK are there – wage inflation has begun to materialise, and inflation will return once the drop in the oil price stops affecting the Retail Price Index.

Some equity investors have warned that once inflation does pick up, those exposed to UK companies should be prepared for the FTSE to falter, but Neptune’s Mark Martin says it is nothing we have not seen before.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Neptune UK Mid Cap A Acc GBP3.50 GBP-0.12

About Author

Emma Wall  is former Senior International Editor for Morningstar

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