(Bloomberg) — UK stock bulls await vindication in 2025 as an enticing discount and large shareholder payouts are set to lift the market.
The FTSE 100 has managed a decent 6% gain this year, though it still lagged the Euro Stoxx 50 and the S&P 500. And while 2025 is rife with uncertainties — like a threat of trade wars under Donald Trump, the return of inflation pressures and potentially fewer rate cuts in the US — such developments may further boost the relative allure of UK companies, which are focused more on defensive sectors and the service economy.
“I’m more bullish now than I’ve been the last 30 years of my career,” said Gervais Williams, manager of the Diverse Income Trust at Premier Miton Investors. “The main background is of course that the UK is standing on a low valuation” relative to peers, he said.
Williams said UK corporates generate a lot of cash surplus and if things get tricky in 2025, they could prove…
