The return of dividends: Can UK equities rebound next year after a torrid 2020?

Picture looks rosy for domestic stocks

clock • 4 min read

2020 has been a horrible year for investors in UK equities. At the time of writing (20 November), the FTSE 100 is down more than 15% year to date, according to Bloomberg.

This compares poorly with most other equity markets across the globe and looks quite wrong when compared to China CSI 300 which is up 28% (year to date in GBP) and the US Nasdaq which is up 33% (year-to-date in GBP).  Capital Economics: FTSE 100 to hit 7,500 in 2021 The reasons for this huge underperformance are varied but can best be assigned to four key issues: Brexit, the Covid-19 pandemic, dividend cuts and a lack of technology in the UK index.  Other considerations include the impact of low interest rates on banks and an ESG push against big oil stocks, both of which were impo...

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