Don't Be Fooled by Cheap Looking Stocks

Evenlode Income co-fund manager, Ben Peters discusses how investors can avoid valuation traps forming in the UK equity market and unearth compelling long term opportunities

External Writer 26 September, 2016 | 9:54AM

Morningstar's "Perspectives" series features investment insights from third-party contributors. Here, Evenlode Income co-fund manager, Ben Peters, discusses how to avoid valuation traps in stimulus-pumped UK equities.

An absolute view on valuation is an interesting question in these times of unprecedentedly low interest rates. Bonds are a recurring theme at the moment for good reason; when the equity market responds vigorously to an event such as the ten-year bund yield turning positive, one knows we’re in an unusual situation.

Some stocks have been dragged up in price by low bond yields

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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.

Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Diageo PLC2,567.00 GBX-0.31
GlaxoSmithKline PLC1,555.20 GBX0.34
Halfords Group PLC157.80 GBX1.81
MITIE Group PLC34.70 GBX1.91
PZ Cussons PLC197.00 GBX0.00
Smiths Group PLC1,442.50 GBX0.45

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