R&M's Sergeant: Brexit and Corbyn fears make UK equities 'cheapest in the world'

River and Mercantile's Hugh Sergeant

River and Mercantile's Hugh Sergeant

Investors have shunned UK stocks ever since the country voted to leave the European Union, with more than £1.8bn flowing from the Investment Association's UK All Companies sector in 2017 alone, writes River & Mercantile's Hugh Sergeant.

While Brexit and the prospect of a Jeremy Corbyn-led Labour government remain threats to the UK market, they have also made UK stocks the cheapest in the world on current valuations. Tackling Brexit first, in consensus with the rest of the investment community, we have been cautious since the original Brexit vote. But where we stand today is that these uncertainties are now largely discounted. Concerns were also growing that an anti-business Labour government could have disastrous effects on both the stock market and the UK's economy. However, to anextent even the potential political ...

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