A good time to invest in UK equities?

MaxiRobriguez

I'm a Brexit voter, but have a nagging feeling that a second referendum is almost guaranteed, at which point a remain vote will win.

If that happens, there's probably going to be a quick bounce in GBP and all the trade worries that Brexit was bringing suddenly dissipates.

My bet is on UK mid-caps being a top performer for the next few years. UK equities are pretty cheap at the moment, if it doesn't come to pass at least I'm not paying top pound for mediocre assets. This will be the first time in a very long time I've added UK assets (I'm at 3% allocation at the mo) as I tend to think my job and house is UK based so to stick to the diversification mantra then I don't need UK investments.

Thrugelmir

MaxiRobriguez wrote: »

If that happens, there's probably going to be a quick bounce in GBP and all the trade worries that Brexit was bringing suddenly dissipates.

Don't let Brexit take your eye off wider issues. New car sales in China down for 5 consecutive months for example. Are going to have a far more immediate impact. Expect sizable number of lay-offs at JLR sooner rather than later.

Prism

Thrugelmir wrote: »

Don't let Brexit take your eye off wider issues. New car sales in China down for 5 consecutive months for example. Are going to have a far more immediate impact. Expect sizable number of lay-offs at JLR sooner rather than later.

I disagree that there are any wider issues than Brexit for a UK investor. What happens over the next few months could have a huge impact on our economic future for many years to come. Whether or not China has a 6% or 7% growth rate next year has no real impact on the next 10 years of gains.

Thrugelmir

Germany is the only country within the EU that's larger than China in terms of value.

MaxiRobriguez

Blimey I was told about Turkey joining the EU but not China! We're going to be flooded! 1 billion immigrants! It won't be long until Rotherham is the size of New York.