Some years ago we said the UK equity market was as popular as a North Korean tourist brochure. It is impossible to think of a printable analogy for what has happened since. It is currently the cheapest major index in the developed world. But there are rays of light.
The UK has been noticeably more resilient than some of its more fashionable peers and we are finding a large number of well-informed investors wanting to buy UK equites. Who? The companies themselves. FTSE 100 companies have spent a record £46.9bn on share buybacks so far this year, according to AJ Bell. Dividend payments are expected to reach £85bn this year. What should we think of this, given that dividends have been such an important component of our historic returns? Are share buybacks the best use of capital? Companies that invest in their people, brand and user experience prote...
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