The Bank of England committee that’s responsible for setting monetary policy decided to cut interest rates earlier this month. Economists expect that another one or two cuts will be seen before the end of this year. The move lower is generally positive for .
Yet here are some specific UK shares that I think could be primed to outperform. The man on the street ( ) is a well-known clothing and homeware brand. The business has already been outperforming the broader , with the stock up 47% over the past year.
However, I think this rally could continue as interest rates fall further. This is because the prime demographic for Next is the everyday man on the street. It’s not high-end luxury with a big price tag, or bargain basement low-quality gear.
What this means is that it should see demand grow as people start to spend more. After all, when interest rates fall, it creates more of an incentive to spend rather than save. If customer sentiment improves, people tend not to spend more on basic goods, but rather on brands they like.
Given that we’re not expecting an economic boom tomorrow, I don’t see people splashing cash on luxury. So Next is the perfect in-between level where I believe people will spend at. As a risk, Next is also impacted financially by some external factors.
For example, poor weather can hurt performance. I simply can’t forecast for this future occurence. More loan business ( ) is a collection of banks, including NatWest and Coutts.
It has a strong clie.