The Financial Outlook for Personal Investors: US interest rates and UK market prospects

Russ Mould of A J Bell discusses the Fed cutting rates by half a percentage point – rather high for the start of a cycle – and China's latest attempt at stimulus. In the UK, cyclical sectors are leading the way and the market benefits from being lower-rated and having more political stability, at least more than the US. The FTSE-350 also has an effective yield of 7.5%. Financial markets were not keen on Brexit but the pound is now almost back to pre-Brexit levels against the dollar, which will help suppress inflation, even if it crimps earnings and dividends.