‘A rising tide lifts all boats’ – although for the FTSE, not all ships are built the same. You see, high quality stocks tend to outperform others during both calm and choppy seas. Such as specialist plant hire firm Vp, which enjoys strong niche positions across a range of verticals, geographies & equipment types
Indeed this resilience came through again at this morning’s positive H1 trading update. Here, notwithstanding macro headwinds (eg Brexit) and the completion of the 5-year Water (AMP 6) and Rail (CP5) investment rounds, FY20 is anticipated to be “in line with expectations”. UK infrastructure spend “held up well”, whilst housebuilding remains stable, due to near-record employment, low borrowing costs, good mortgage availability and the popular Help to Buy scheme. Partly offset by softness in general construction, particularly centred on London and the South East.