Aviva Investors' Chris Murphy picks the stocks and sectors he expects to perform despite an environment of low growth and macro turmoil, with ‘self help' companies set to thrive.
Animal spirits have returned to equity markets in recent months, with the FTSE All Share reaching a 12-month high in mid-March and posting a return of over 10% in the first quarter. The US and German equity markets followed suit and have set, or challenged, record highs since the start of the year. Valuations for UK equities remain attractive on an earnings/cashflow basis compared to long run averages. Yields remain at or better than historic averages at a time when the world is on ‘emergency’ interest rates. So, against other assets, UK equity yields are compelling. Importantly, this...
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