Investor Opportunities: Hard to Find

Professional investors see emerging markets and European equities as the best bet for growth at the moment. But opinion was split on the UK

David Brenchley 11 May, 2018 | 12:23AM

 

 

Europe and emerging market equities are two big areas of opportunity for professional investors, but the UK divides opinion.

Speaking at the Morningstar Investment Conference in London last week, a number of financial advisers said emerging markets and Europe still look attractively valued. In an environment where asset prices generally are inflated, meaning returns going forward are likely to be more modest than previous years, these two regions are the standout calls.

The UK remains an interesting market. As we revealed this week, many investors are still concerned about the impact of Brexit on their portfolios. As a result, many said they have been pulling cash out of UK equities, in favour of a more global approach.

However, among the professionals, there were plenty of positive voices for the home market. Some note that UK firms are currently trading on big discounts, having seen their share prices pare back ever since the UK voted to leave the European Union.

Meanwhile, mid and small caps, the areas most at risk from Brexit, are also being tipped to continue to perform well.

The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

About Author David Brenchley

David Brenchley  is a Reporter for Morningstar.co.uk