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.
