Regardless of how you plan to access UK equities, commentators would argue it is important to try to put aside short-term volatility and participate rather than flee to the side-lines.
“The natural reaction of investors is to stand back and await the outcome, however, we should not ignore the fact that the FTSE-100 is still over 13% below the all-time high achieved in April 2015 and yields an average of 4%,” says Guy Stephens, managing director at Rowan Dartington Signature.
“The alternatives available either yield less, significantly less in the case of investable fixed interest and cash, or look increasingly expensive in the case of some areas of commercial property. The risk/return relationship for equities does rather argue against being underweight when the alternatives are relatively unattractive.”
He adds: “If ever there was an argument for active management where your investment manager chooses where to actively weight investors’ funds, this is it.”
