The author is chair of Marshall Wace, a multi-strategy investment manager
The UK stock market is becoming a global backwater as US and Chinese markets forge ahead. It has largely failed to take part in the global rally that began in 2015.
Of course, both the US and Chinese stock markets benefit from more dynamic and expansive hinterlands, with leadership in so many of the new industries that are driving stock market performance, from fintech, renewables and mobility, to medtech, agritech and artificial intelligence. But beyond these natural advantages, the US in particular is now increasingly attracting companies from all over the world, including the UK, to list on its exchanges.
They are drawn partly by the knowledge that US policymakers can be relied upon to support the stock market. But the US equity market also boasts far higher trading volumes and far higher valuations than any of its international peers. We are reaching the point where companies may decide we should simply all agree on a single global exchange, trading 24 hours and located in New York.
The UK is not…
