Biggest risk for UK stocks right now? There's no recession, strategist says
Publishing timestamp: 2023-01-12 10:15:20
Summary
The Bank of England has projected that the U.K. has entered its longest recession on record. Roger Lee, head of U.K. equity strategy at Investec, believes that the biggest risk to U.K. stock market is avoiding the widely anticipated recession. Despite five successive quarterly declines, the U.K. labor market has remained robust. The FTSE 100 index has underperformed most developed market counterparts for many years, particularly the S&P 500. Lee suggested that the persistent undervaluation of FTSE is owed to a combination of U.K. stocks needing to appreciate and U.S. markets having further to retreat. He also noted that if FTSE paid away the same yield as MSCI World, it would be trading well over 9000 points.
Sentiment: NEUTRAL
Keywords: ftse 100, investment strategy, s&p 500 index, business news, markets, u.s. economy,