It’s Been A Dark Time For UK Investors, But Some Green Shoots Are Popping Up

Luke Suddards

3 months ago3:51 mins

It’s Been A Dark Time For UK Investors, But Some Green Shoots Are Popping Up

There’s been a constant stream of pessimism about “UK plc” of late – and this naturally awakened the contrarian in me. So I decided to look at the corporate UK landscape from a different perspective, hunting for whatever green shoots I might find. I dug into analyses from JPMorgan and AJ Bell and found three big reasons for optimism in Britain’s largest companies. Here they are…

1. They have an impressively low forward P/E.

From a valuation perspective, the country’s stocks appear attractively priced. The MSCI’s UK index’s forward P/E ratio – the price-to-earnings measure that uses forecasted profits in its calculation – has fallen to a record low relative to the MSCI World index. And as you can tell from the chart, it’s now dipped well below two standard deviations from its usual,

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