X

About

Advertise

Contact

Jobs

Tools for Advisers

Linkedin
Twitter
Facebook-f
  • News
    • In the Press
    • Politics and Finance
    • General
  • Featured
    • Podcasts & Films
    • Interviews
    • Events
    • Finance on Social Media
    • Jobs
    • MPS Report
  • GBI
    • Tax Efficient Investments
    • Open Investment Opportunities
    • People Behind the Product
    • GBI Magazine Issues
    • About GBI
  • Business
    • Regulation and Compliance
  • Magazines
  • The M&G Adviser Hub
Menu
  • News
    • In the Press
    • Politics and Finance
    • General
  • Featured
    • Podcasts & Films
    • Interviews
    • Events
    • Finance on Social Media
    • Jobs
    • MPS Report
  • GBI
    • Tax Efficient Investments
    • Open Investment Opportunities
    • People Behind the Product
    • GBI Magazine Issues
    • About GBI
  • Business
    • Regulation and Compliance
  • Magazines
  • The M&G Adviser Hub
Search
Close

About

Advertise

Contact

Jobs

Tools for Advisers

Untitled-1
Linkedin
Twitter
Facebook-f
  • News
    • In the Press
    • Politics and Finance
    • General
  • Featured
    • Podcasts & Films
    • Interviews
    • Events
    • Finance on Social Media
    • Jobs
    • MPS Report
  • GBI
    • Tax Efficient Investments
    • Open Investment Opportunities
    • People Behind the Product
    • GBI Magazine Issues
    • About GBI
  • Business
    • Regulation and Compliance
  • Magazines
  • The M&G Adviser Hub
Menu
  • News
    • In the Press
    • Politics and Finance
    • General
  • Featured
    • Podcasts & Films
    • Interviews
    • Events
    • Finance on Social Media
    • Jobs
    • MPS Report
  • GBI
    • Tax Efficient Investments
    • Open Investment Opportunities
    • People Behind the Product
    • GBI Magazine Issues
    • About GBI
  • Business
    • Regulation and Compliance
  • Magazines
  • The M&G Adviser Hub
Untitled-1
Linkedin
Twitter
Facebook-f

Depressed UK stocks could prove rich pickings in 2021

by Peter Wilson
January 14, 2021
in News
Depressed UK stocks could prove rich pickings in 2021
Share this story

Scott McKenzie, co-manager of the TB Saracen UK Alpha Fund, says UK equity market is still a global pariah and coupled with an ongoing value rotation this creates strong opportunities for investors:

“The changes over the last quarter at a sector level were dramatic. In a nutshell, everything which had previously performed strongly, such as healthcare, technology, staples and utilities began to underperform, whilst previous laggards such as banks, oils and telecoms delivered strong returns from a very low base.  After the recent value rally, it would come as no surprise were the more growth-oriented stocks with fuller valuations to stage a comeback early in 2021.

“However, in the longer-term value still looks very depressed and there are few bigger valuation discounts than the UK market. Despite a strong rally from low levels in the final quarter the UK market remains a pariah in a global context and continues to trade on a huge valuation discount. This means there are potentially rich pickings for UK investors now that Brexit is done.

“It is true some of the discount for UK stocks is warranted as UK indices are dominated by mature sectors such as oils, banks and tobacco and there is little exposure to technology stocks in the main indices. However, this valuation discount permeates across all sectors of the UK, typically leading to lower ratings against global peers in most industries.”

“We remain generally positive on the UK market given the potential for positive earnings revisions from current low levels and improving outlook. We expect a strong pick-up in M&A activity in 2021 as a result of low valuations in the UK, low interest rates and the wall of money in the private equity world looking for a home.”

“We are also beginning to see evidence of a post-COVID-19 recovery in earnings expectations from UK companies. These improved revisions have emerged as corporates report strong recoveries from the low points following the initial lockdown, led by pent-up demand in many cases. This combination of low valuation and improved earnings momentum may prove a potent one in the year ahead.”

Previous Post

Sector movers: Expectations for US stimulus feed gains in oil patch, weigh on Tech

Previous Post

Polar Capital increase AUM by 55% from 1 April 2020

Previous Post

Wednesday newspaper round-up: Morrisons, property market, freight costs

Next Post

FCA to extend repossession ban until 1 April

Next Post

How is British business fairing in lockdown 3?

Next Post

Great Portland secures 77% of December quarter rents

Related Posts

Pembroke VCT sees 2.3x exit in 12 months
News

Pembroke VCT sees 2.3x exit in 12 months

January 15, 2021
£122 billion inflation blow for pensioners and investors
News

Good news for investors as M&G Investments reduces annual charge across large proportion of OEIC funds

January 15, 2021
MP’s put FCA under the microscope
Finance on Social Media

London Capital & Finance judicial review

January 15, 2021
ThinCats
News

Supreme Court judgement in FCA’s business interruption insurance test case

January 15, 2021
UK business prepares to reopen
News

FTSE 100 lower as unsettling economic news overshadows stimulus optimism

January 15, 2021
‘A very difficult March for all participants in the housing market,’ says Ray Boulger
Feature

New UK levy on assets above £500,000 – what do private clients need to know?

January 14, 2021
Next Post

FCA to extend repossession ban until 1 April

Smith & Williamson Investment Management prepares for the return of inflation

How is British business fairing in lockdown 3?

Great Portland secures 77% of December quarter rents

Podcasts & Films

  • Put an atomic clock in your car, phone and on your wrist
    January 13, 2021
  • The Nexus Scale-Up Fund walk through
    December 21, 2020
  • Net4 x ARIE Capital webinar, hosted by CoInvestor
    December 18, 2020
  • How does Nexus Communicate with clients?
    December 18, 2020
  • Nexus Investments – Reasons for Advisers to be positive in 2021
    December 17, 2020
  • The Nexus Story
    December 16, 2020

Today’s Most Read

  • Wirecard scandal: EY defends itself in the Bundestag
    January 14, 2021

    @peter_IFAMAG reads Twitter so you don’t have to. The Wirecard Investigation Team meets again at the Bundestag today. Prompted by investor action following the Wirecard

  • Brexit agreement leaves UK financial services operating under no deal scenarios
    January 11, 2021

    Tej Patel, Partner and Regulatory Practice Lead at Capco, comments on the continued uncertainty facing UK-based financial services firms post-Brexit. Given that financial services were

  • OnePlanetCapital launch new EIS fund
    January 11, 2021

    OnePlanetCapital, a new sustainably driven investment house, has today launched a specialist sustainability EIS Fund to invest in businesses tackling climate change. The new OnePlanetCapital

  • Former Man Group and Octopus Real Estate executives launch Silbury Finance
    January 14, 2021

    Two experienced property finance executives, backed by funds managed by Oaktree Capital Management, L.P. (“Oaktree”), have launched Silbury Finance (“Silbury”), a platform providing bespoke senior

  • London Capital & Finance judicial review
    January 15, 2021

    @peter_IFAMAG reads Twitter so you don’t have to. The London Capital and Finance vehicle lost 11,625 investors £237m in January 2019. Today brings news that

  • Supreme Court judgement in FCA’s business interruption insurance test case
    January 15, 2021

    The Supreme Court delivers judgement in favour of policyholders in the FCA’s business interruption insurance test case The Supreme Court has substantially allowed the FCA’s appeal on

  • New UK levy on assets above £500,000 – what do private clients need to know?
    January 14, 2021

    By Paul Fairbairn, partner at Cripps Pemberton Greenish On 9 December the self-styled and in no way government-affiliated Wealth Tax Commission published their findings. This

  • Unpicking the jargon of responsible investing
    January 12, 2021

    George Robinson, Business Development Manager for VALA Capital, wrote the following article to help explain the difference between ESG and Sustainable investing.   Investors are increasingly

  • Canaccord unveils new ESG portfolios on Embark Platform
    January 12, 2021

    Canaccord Genuity Wealth today launches an Environmental, Social and Governance (ESG) portfolio range available on Embark Platform. Financial advisers using the Embark Platform will now be

  • The ten secrets to mastering a last-minute tax return
    January 11, 2021

    Your self-assessment tax return deadline is due by midnight on 31 January. Last year, 11.1 million people filed a return on time, more than 70,000

More Articles

Blackfinch Ventures: In the spotlight
Interviews

Blackfinch Ventures: In the spotlight

January 7, 2021
Making a positive difference at the cutting edge
Interviews

Making a positive difference at the cutting edge

January 7, 2021
Meet the manager of the M&G Global Listed Infrastructure Fund
Interviews

Meet the manager of the M&G Global Listed Infrastructure Fund

December 15, 2020
Par Equity is the bright EIS star of the North 
Interviews

Par Equity is the bright EIS star of the North 

November 23, 2020
What’s next for Mercia?
Interviews

What’s next for Mercia?

November 2, 2020
M&G Positive Impact Fund: Q&A with Ben Constable-Maxwell
Interviews

M&G Positive Impact Fund: Q&A with Ben Constable-Maxwell

October 21, 2020
People Behind the Product: Pippa Gawley, Zero Carbon Capital
GBI

People Behind the Product: Pippa Gawley, Zero Carbon Capital

October 7, 2020
People Behind the Product: Matthew Steiner, Stellar Asset Management
GBI

People Behind the Product: Matthew Steiner, Stellar Asset Management

October 6, 2020
People Behind the Product: Ewan Lloyd-Baker, Seismic Venture Partners
GBI

People Behind the Product: Ewan Lloyd-Baker, Seismic Venture Partners

October 5, 2020

About Us

​IFA Magazine – for today’s discerning financial and investment professional.

Published ten times a year, IFA Magazine has been winning a keen and enthusiastic following among Britain’s premier financial advisers, planners and paraplanners.

Newsletter

    Follow Us

    Linkedin
    Twitter
    Facebook-f

    © 2021 All rights reserved​ to IFA Magazine | Website by: Nivo Digital | Terms and Conditions

    Do NOT follow this link or you will be banned from the site!

    Adblock Blocker

    We have detected that you are using

    adblocking plugin in your browser. 

    Keep updated on the most important financial events 

    Make sure you are an informed

    wealth professional..

    IFA Magazine
    • News
      • In the Press
      • Politics and Finance
      • General
    • Featured
      • Podcasts & Films
      • Interviews
      • Events
      • Finance on Social Media
      • Jobs
      • MPS Report
    • GBI
      • Tax Efficient Investments
      • Open Investment Opportunities
      • People Behind the Product
      • GBI Magazine Issues
      • About GBI
    • Business
      • Regulation and Compliance
    • Magazines
    • The M&G Adviser Hub