UK equities: Is the valuation gap starting to narrow?

Deep Dive into UK equities

UK equities cannot get a break. The heady combination of Brexit, followed by a global health pandemic which hit the UK economy harder than many of its peers, imposed a sizeable discount on equity market valuations.

On a whole variety of metrics, that valuation gap remains around all-time highs. The good news is that gap may be starting to narrow as prior headwinds look set to unwind. The post-Brexit trade deal with the EU, which was ratified back in April, was a necessary first step on that road. While trade between the UK and EU fell has fallen since the end of the Brexit transition, this will likely pick up as the reduction in uncertainty for businesses, and investors, kicks into gear.  GAM's Gosden: The next 12-18 months will be 'once in a generation opportunity' for UK equity investors Th...