U.K. Market Feels Like its Underowned, Says Schroders’s Davidson

The video discusses the impact of Brexit on the UK economy and global fund management, highlighting the under-ownership of the UK market by global managers. It explores the UK market's potential for global growth, focusing on multinational companies and the cautious outlook for the year. The discussion covers market recovery since Christmas, current valuation challenges, and potential opportunities in the UK market, particularly in the Footsie 250. The video concludes with a focus on sector preferences, emphasizing quality and defensive stocks, and interest in emerging markets due to favorable conditions.

What is one of the main concerns regarding a longer Brexit delay?

• It could complicate the situation due to European elections.

• It would have no impact on the UK economy.

• It might provide immediate clarity for the UK economy.

• It could simplify the European elections.

Why is the UK market considered under-owned by global managers?

• Because it is overvalued compared to other markets.

• Due to its high volatility and risk.

• Because global managers find it too complex.

• Due to its lack of growth potential.

What has supported the recent sharp recovery in markets?

• A rise in consumer spending.

• A decrease in global trade tensions.

• Monetary easing and fiscal support.

• Increased political stability.

What is the investment preference at this point in the cycle?

• Cyclicals over defensive stocks.

• Only domestic UK companies.

• Companies with secular growth and strong balance sheets.

• High-risk, high-reward stocks.

Why are emerging markets considered interesting for investment?

• Due to their high inflation rates.

• Due to their stable political environment.

• Because of the weakening dollar and potential rate easing.

• Because they have no exposure to global risks.