It seems no-one can quite bring themselves to believe that this will be the UK’s year. Nearly five years on from the Brexit vote, talking down our domestic stock market has become almost second nature. And that, of course, is precisely the moment that contrarian investors should get interested.
The reasons why investors might want to give the UK a wide berth are well-known. The process and politics of Brexit may be less of a focus but they’ve only been replaced as a concern by the economic cost; the UK has almost no exposure to the tech sectors which have driven markets higher in recent years; and, for international investors, we’re just too small to warrant looking beyond these negative headlines.
But these are the intellectual short cuts – lazy thinking really – which create investment opportunities. Long-running neglect has laid the groundwork for a recovery in our local market’s fortunes. No-one has paid much of a price for ignoring the UK in recent years; this year they might. Read more…..
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