Currently, UK equities are cheap compared to their foreign counterparts. But with potential takeover activity on the horizon, and growth back on the cards, it appears the tide might be beginning to shift.
In recent years, the UK market has been struggling to keep up with its competitors and has suffered due to its lack of high-quality tech stocks as US-based firms have seen meteoric gains.
As a result, UK equities are considerably cheaper than those in the US or Europe, and at the same time are delivering higher dividends and operating in a faster growing economy.
On the rise: Cheap UK equities could be set to grow in value as the economy stabilises
Richard Hunter, head of markets at Interactive Investor, said: ‘The FTSE 100 has tended to languish over recent years, not least of which was due to the fallout from Brexit and the index’s relatively low exposure to the technology sector, which has latterly been “the” trade which…
