UK equities may look cheap, but are they cheap for a reason?
Paul O’Neill, chief investment officer at Bentley Reid, joins the Asset Allocator podcast to explain why global investors should “stay away” from the UK market for now – despite seeing genuine valuation opportunities for individual investors and fund managers.
With investment flows remaining negative, the UK market shrinking and small and mid-cap equities facing challenges around liquidity and volatility, O’Neill examines what would need to change before the UK becomes a more compelling allocation for global portfolios.
He also discusses how the UK’s declining weight in global equity benchmarks has changed the way asset allocators approach the market, and why even a significant overweight to UK stocks can have a surprisingly small impact on a global portfolio.
Elsewhere, the conversation explores the investment outlook beyond equities, including what higher bond yields mean for portfolio construction and the growing role of alternative investments.
Timestamps
00:00 - Podcast Intro & Market Overview
03:18 - Bonds, Rates & Equity Strategy
06:14 - UK Equity Opportunities
08:23 - Alternative Investments & Bonds
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