Britain’s Stock Market Has Only Two Buyers Left. What That Means For Your Shares
The UK stock market is shrinking, and the FTSE 100 now depends on two buyers: companies buying back their own shares, and overseas bidders. Neil Woodford explains where the third buyer went, why the Financial Times has blamed the wrong thing, and what it means if you own UK shares.
The UK stock market is shrinking, and the FTSE 100 now depends on two buyers: companies buying back their own shares, and overseas bidders. Neil Woodford explains where the third buyer went, why the Financial Times has blamed the wrong thing, and what it means if you own UK shares.
UK pension funds used to hold more than half their assets in UK shares. Today it is about 4%. UK equity funds have had 10 straight years of outflows. So when the FT says share buybacks are draining British companies of investment, Neil's answer is that the buyback is a symptom. He names the cause, and the cost to the taxpayer: about £54bn a year.
The UK stock market is shrinking, and the FTSE 100 now depends on two buyers: companies buying back their own shares, and overseas bidders. Neil Woodford explains where the third buyer went, why the Financial Times has blamed the wrong thing, and what it means if you own UK shares.
UK pension funds used to hold more than half their assets in UK shares. Today it is about 4%. UK equity funds have had 10 straight years of outflows. So when the FT says share buybacks are draining British companies of investment, Neil's answer is that the buyback is a symptom. He names the cause, and the cost to the taxpayer: about £54bn a year.