The case for UK Equities

Park the pessimism, time for positivity on UK Equities
Wes McCoy, Investment Director, Aberdeen Standard Investments

Wes McCoy, Investment Director, Aberdeen Standard Investments

 

The negative mood enveloping UK equities looks overdone – we argue there are compelling reasons for investing at the current time. In particular, the consensual pessimism has created pricing anomalies that, for bottom-up stock-pickers, offer meaningful upside return opportunities.

The BAML global fund manager April survey revealed that UK equities are considered the least attractive asset class, with UK equity market returns having lagged most other major indices. While most internationally-focused stocks have held up comparatively well, UK-domestic stocks are singularly unloved, trading at valuations last seen post the 2008 financial crisis. Historically, such circumstances have proved fertile hunting ground for stock-pickers. Indeed, our analysis reveals many of these stocks continue to benefit from strong fundamentals and a positive outlook.

In his webinar, Wes McCoy, Investment Director Aberdeen Standard Investments, looks at what is weighing on investor sentiment, if this is justified and explains why he believes now is the time to revisit UK Equities.

Watch webinar


Issued by Aberdeen Standard Investments

All information, opinions and estimates in this document are those of Aberdeen Standard Investments, and constitute our best judgement as of the date of publication and may be superseded by subsequent market events or other reasons. This material is for informational purposes only. This should not be relied upon as a forecast, research or investment advice. For investment professionals only.

The value of an investment is not guaranteed and can go down as well as up. An investor may get back less than they invested. Past performance is not a guide to the future.

Aberdeen Standard Investments is a brand of the investment businesses of Aberdeen Asset Management and Standard Life Investments.

Aberdeen Asset Managers Limited is registered in Scotland (SC108419) at 10 Queen’s Terrace, Aberdeen, Scotland, AB10 1XL, Standard Life Investments Limited is registered in Scotland (SC123321) at 1 George Street, Edinburgh EH2 2LL, and both companies are authorised and regulated in the UK by the Financial Conduct Authority.