The current economic situation of UK Essay Example | Topics and Well Written Essays - 2000 words

The current economic situation of UK - render ExampleMorris Capital is going to face a situation in which there may be a gap between its inflows and outflows and as such its liquidity may be drained in coming periods. Based on this, it is estimated that the fund withdrawals will be 3% more than the inflows received by the firm owing to the fact that its investment strategy allow investors to start withdrawing the funds after v years. Considering this situation, the Investment Committee of Morris Capital is going to meet in March 2010 to further discuss the strategic allocation of the assets as well as outline the rising course of action. This report will and so provide an overview of the current investment environment and provide alternatives for plausible asset allocation along with the recommendations for the future course of action that may be taken.The current economic situation of UK is relatively more shaky owing to the financial meltdown that occurred during 2007. The ove rall situation is not considered as healthy as the estimates repoint that the UKs economy will grow at a very sluggish rate as IMFs forecasts indicate that the UKs economy is its worst after 1930s. During 2009, UKs economy experienced a growth rate of just 0.1%1 during the last quarter of 2009 indicating the overall state of the economic conditions.