The UK stockmarket’s performance relative to the global average over the past 12 months has been “the worst in over 40 years”, says a Morgan Stanley note. A bungled pandemic response and ongoing Brexit uncertainty aren’t helping. Yet the key issue is the FTSE’s sector mix. This has been the year of the technology stock, but out of 15 major world markets, only Australia and Switzerland have a lower technology weighting than the UK. Our indices are heavy on unfashionable commodities and financial stocks. The FTSE 250 is down by 18% so far this year, while the FTSE 100 has shed 21%.
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