A good time to invest in UK equities?

jonnygee2

I think the UK is a good buy right now, in fact I just moved 10k over to a UK equities fund so my money is where my mouth is on this one.

I think there is currently too much risk priced into UK equities.

System

jonnygee2 wrote: »

I think the UK is a good buy right now, in fact I just moved 10k over to a UK equities fund so my money is where my mouth is on this one.

I think there is currently too much risk priced into UK equities.

Credit Suisse would disagree:
"Credit Suisse advises clients to consider moving assets out of UK"
https://www.ft.com/content/aacf019a-01e9-11e9-99df-6183d3002ee1

aroominyork

Economic wrote: »

Credit Suisse would disagree:
"Credit Suisse advises clients to consider moving assets out of UK"
https://www.ft.com/content/aacf019a-01e9-11e9-99df-6183d3002ee1

The FT is making a different point: its article is talking about moving assets offshore (Channel Islands, Switzerland); not about keeping them in the UK but investing in non-UK funds.

Anyway, I reviewed my UK funds over the weekend, decided 37% in small caps was too high so am today switching some of it to large caps to bring that down to 27%.

coastline

FTSE stands at 6750 today and would need to hit 8450 for a 25% rise. All time high this year was 7900 so 8450 isn't that far away.
Dividends are forecast 5% next year. 5 years would give a 50% total return ( 5x5% and 25% index ).

https://pbs.twimg.com/media/DudrvbOW0AA3naf.jpg

https://www.gurufocus.com/global-market-valuation.php?country=GBR

P/E values are very reasonable at the moment.

https://www.ceicdata.com/en/indicator/united-kingdom/pe-ratio

S&P 500

https://1.bp.blogspot.com/-UfijCaXv3JA/W-8wmxh93WI/AAAAAAAAr7A/VDVEjw8LgsgWI0U-KWaakb0DI6YChp2eACLcBGAs/s1600/PE%2B2.png

What happens next is another question ?

https://pbs.twimg.com/media/Dp9XJitVAAEMPYy.jpg

TomPucci85

Thanks for these, some fascinating graphs

Wildsound

Source-less post as it was in a presentation today, so if anyone can find something for me which back this up, that would be great. An analyst showcased the fact that he couldn't find a point in time in the last 12 years where Asian markets (ex Japan) have been cheaper than they are today.

jonnygee2

Credit Suisse would disagree:
"Credit Suisse advises clients to consider moving assets out of UK"
https://www.ft.com/content/aacf019a-01e9-11e9-99df-6183d3002ee1

So would a lot of other investors. That's why the price is low!!

poppy10_2

UK equities have been in the toilet for 20 years, and with the imminent self-induced Brexit disaster the economy is not going to go anywhere for another generation. Avoid.

Audaxer

poppy10 wrote: »

UK equities have been in the toilet for 20 years, and with the imminent self-induced Brexit disaster the economy is not going to go anywhere for another generation. Avoid.

The graph above doesn't take account of dividends. UK equity income funds still have a place in many portfolios as they generate decent dividends.

Filo25

Audaxer wrote: »

The graph above doesn't take account of dividends. UK equity income funds still have a place in many portfolios as they generate decent dividends.

And I would imagine that a graph for the FTSE250 would look a lot better for the same time period.

My view at the moment is that I want to have a decent amount of UK mid cap exposure, as a bit of a hedge against the global part of my portfolio which would get hit hard by a better than expected Brexit outcome leading to a recovery in Sterling.