It could be time to resurrect home bias and back UK equities again following a fall in the US equities market, according to some in the industry.
Since Christmas, the UK’s FTSE All-Share index has outperformed the US S&P 500 stock index by about 10 per cent.
This has led to some speculation that the market could be nearing the end of a 15-year period of US dominance, which has led to America making up around 75 per cent of all global equity market capitalisation.
Monmouth Capital managing director, Faisal Sheikh, explained back in the 1980s and 1990s, most portfolios held excessive exposure to UK equities.
“It was right to unwind that in favour of global portfolios. After all, why shouldn’t you benefit from great businesses around the world? That logic still stands,” he said.
“Right now, we think the US is historically overvalued and many other markets are fairly valued, maybe even cheap, including the UK.
“Most ordinary…
