Value Fund Manager and Research Analyst, Tom Grady at Schroders, assesses whether UK equities are fundamentally cheap relative to both history and their international peers.
Few would deny the UK market today looks cheap, yet ‘cheap’ comes in two shades. There is ‘cheap for a reason’ – also known as the ‘value trap’ – and then there is ‘good-value cheap’, which is the end-goal of the value investor. So which one is the UK? Here, we explore five valuation perspectives on whether UK equities offer good value relative to history and their international peers.
1. Repricing indices for money supply shows UK equities still below peaks
The narrative that markets are near all-time highs may be pervasive across the media but is it strictly true? Over time, asset prices generally appear to increase but that is because money is constantly being created – in other words, it is actually money that is being…
