Areas of UK market have discounted the worst

ON UK GROWTH

Invesco Perpetual's Stephen Anness says quality companies are fundamentally mis-priced as macro data drives the market

In my view, areas of the UK market have already discounted the worst. I can buy large, well capitalised, cash generative businesses on historically low valuations and so I believe that in a number of cases the macro risks are already in the price. The UK market also has well diversified earnings streams and many of the cheapest stocks have limited interaction with the domestic economy. This is certainly true of the pharmaceutical and tobacco stocks that offer low earnings volatility and sustainable dividend growth, or as close to earnings certainty as you can get. The way in which com...