UK Outlook for 2020
General Election 2019: Conservative landslide could end ‘buyers strike’ by UK equity investors
Mark Barnett believes the clarity provided by the Conservative majority will help unleash the compelling, long-term opportunity in domestically focused UK equities.
- I remain convinced that domestically orientated equities offer the greatest risk adjusted opportunity to investors.
- The companies in my income portfolios derive around 56% of their revenues from within the UK – double that of the companies in the FTSE All-share index.
- Since the EU Referendum in 2016 we have effectively seen a ‘buyers strike’ – from both investors looking at domestic facing equities and companies looking to invest in their UK capital base.
- The election result brings to an end the paralysis that has affected Westminster and is a catalyst for investors to reconsider the value available in public UK equity markets.
- A knee-jerk rally in currency will benefit unloved domestic stocks but the full benefit of improved sentiment will be longer lasting as investors seek ways to put fresh sterling cash to work in the real domestic economy.
Link to full article – https://www.invesco.co.uk/uk/news-and-insights/general-election-2019-conservative-landslide-could-end-buyers-strike-by-uk-equity-investors?utm_source=pardot&utm_medium=email&utm_campaign=invesco_insights
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