Have you thought about buying British equities? Now could be the perfect moment
The Royal Exchange, City of London. Credit: Andrew Milligan Sumo
Many investors who turned away from British stocks this year due to worries about Brexit and weak economic data have missed out big time!
The UK All Company Fund sector saw a huge investor exodus with outflows of £4.3 billion in March this year – marking the 12th consecutive month of outflows. However, company profit margins for UK businesses, especially multinationals have soared in the last 2 years, thanks in part to a weaker Pound which made UK exports cheaper.
Businesses in the FTSE 350 delivered a collective 158% increase in profits between 2016 and 2017 – stellar gains, but not enough to convince institutional investors to stay loyal to UK shares.
However, strong returns from UK equities over the past few months, as well as the fact they are valued more fairly than their US counterparts, means now could be a great time to buy into funds which hold UK shares.
Writing for This is Money UK, Paul Thomas explained: “British companies have been among the least popular with investors ever since we voted to leave the European Union. That has left the UK with a stock market filled with world-class companies that are looking pretty cheap by international standards.”
So if you’re looking to broaden your portfolio and include some British companies in the mix, the Invstr Portfolio has you covered, because within it you can access a broad range of low-cost exchange traded funds which cover British equities including the Europe ETF FTSE Vanguard and SPDR STOXX Europe 50 ETF.
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