Political sentiment has ended up driving down the price of UK stocks unnecessarily according to the Share Centre.
Sheridan Admans, investment manager at The Share Centresaid Brexit’s impact on the UK’s position on the world stage was one of great significance which had “seen sentiment towards investing in UK equities sink with outflows from active UK managers reaching into billions over the course of the last few years”.
Admans added that the UK had as a result become the most unloved developed market to invest in.
But he said he now believed sentiment towards the UK had become so bad that the upside potential outweighs the pessimism.
Admans said evidence of this was the launch of Richard Penny’s CRUX UK Special Situations fund. The fund focuses on a high conviction concentrated portfolio of UK stocks
He agrees with Penny’s view that ‘now is the ideal time to be bringing this new offering as the UK remains out of favour and the uncertain environment creates numerous attractive opportunities for experienced stock-pickers.
“Yes, Brexit is likely to continue to be a drag on investor confidence in the interim however, the economic situation has been better and more resilient than many expected – the wheels haven’t come off.
By Courtesy of whatinvestment.co.uk