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Stock market rally driven by ’sentiment’, warns Alliance Trust’s Katherine Garrett-Cox
The recent stock market rally is driven only by “sentiment” according to Katherine Garrett-Cox, the chief executive of fund manager Alliance Trust, who has warned the UK economy remains uncertain.
Katherine Garrett-Cox, chief executive of Alliance Trust, said the recent stock market rally has been driven by sentiment
Ms Garrett-Cox, who took the helm at Alliance last year, gave the warning after her company slipped to 36th place out of a peer group of 44 fund managers during the first six months of the year.
Alliance saw its net asset value rise 6.8pc to 338.3p. The trust made a total return of 8.8pc in the six months to July 31, compared with 16.1pc for the FTSE All-Share index and 14.2pc for the sterling adjusted FTSE All-World index. However, the company raised its interim divident by 1.25pc to 2.02p.
“I think the recent stock market rally has been driven by sentiment rather than fundamental facts. Against that backdrop we’re sticking to our principles and have been very selective our choice of equities,” she said. “If an asset has lost 90pc of its value you would expect it to rally at some stage. It doesn’t mean the company is in great shape.”
via Stock market rally driven by ’sentiment’, warns Alliance Trust’s Katherine Garrett-Cox – Telegraph.
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