China is undoubtedly the major stock market least popular with foreign investors. Yet there is another economy with consumers who are reluctant to spend, an unhealthy obsession with residential property, and more than a decade of anti-business governments with no idea how to boost growth – but where valuations are low (relative to other markets) and sentiment has been at rock bottom.
To be fair, that could describe a number of countries – but I am, of course, talking about Britain. My comparisons are more than a little glib (for a start, China has built too much housing, while the UK cannot build enough). Still, just as there is a case for at least a cyclical rally in Chinese stocks, you can make one for the UK.
High savings and lower rates
(Image credit: Office for National Statistics)
The UK savings rate has risen significantly in recent years (ignoring the distortion caused by the pandemic). Starting from that high level means…
