Are UK valuations too expensive?

Are UK valuations too expensive?

The UK recovery is under way, but may sector valuations are now looking stretched. Ben Williams, investment manager at Saunderson House, looks at where investors can find value.

The UK is forecast to be the fastest growing G7 economy in 2014, according to the International Monetary Fund. The group’s most recent World Economic Outlook forecasts the UK will expand by 2.9% in 2014, and by a further 2.5% in 2015. This contrasts sharply with a year ago when the IMF was forecasting growth of only 1.5% in 2014. Why the change? A rebound in consumer confidence and spending, easier credit conditions, steadily falling unemployment and low inflation have all contributed to this marked forecast change. Meanwhile, the Bank of England is likely to keep interest rates at re...