The End of Brexit as we Know it and How to Trade This New Reality.

TL;DR

UK stock markets have reached a six-month high, driven by factors such as the US job numbers and the potential for a US-China trade deal. Despite concerns of a global recession, UK shares are considered cheap with a high dividend yield.

Transcript

let's talk to Clement chambers from investors have very good morning to Clement good morning me UK stock markets hit six month high recently whereas the political side of the UK hit a forty three year low if you recall in 1976 we went cap enhance the IMF to bail out a loan terms and what's driving the UK markets at moments been suggesting the US jo... Read More

Key Insights

• 💄 Brexit uncertainty seems to have diminished, making the UK market more appealing to investors.
• ✋ UK shares are considered cheap, with a high dividend yield of 4.4% on the FTSE.
• ❓ Outflows from the UK equity market indicate some caution but do not outweigh the potential for growth.
• 🇩🇪 The UK market lags behind the US and German markets, presenting an opportunity for catch-up.
• 🍉 Investing in long-term, dividend-paying companies may be a wise strategy in the current market conditions.
• ❓ The UK market's performance may be influenced by the outcome of Brexit negotiations.
• 🌐 Concerns of a global recession are present, but UK shares' attractiveness and cheap valuations provide some respite.

Questions & Answers

Q: What factors have been driving the UK stock markets recently?

The UK markets have been influenced by positive US job numbers and the potential for a trade deal between the US and China, which has contributed to the surge in stock market performance.

Q: Is there a risk of a global recession next year?

While there are concerns about a global recession, the cheapness of UK shares and the high dividend yield on the FTSE make them attractive to investors, minimizing the risk of a recession for now.

Q: Has the UK equity market experienced outflows recently?

Yes, there have been outflows of five billion from the UK equity market in the last four months, indicating some investor caution. However, the high dividend yield and cheap valuations of UK shares still make them appealing.

Q: Should investors consider buying the UK market at this point?

The speaker suggests that Brexit uncertainty has diminished, making it increasingly safe to be in equities. They believe the UK market has the potential to reach all-time highs, with another 7-8% growth in the next year.

Summary & Key Takeaways

• UK stock markets have surged to a six-month high while the political landscape is facing its lowest point in 43 years.

• Factors driving the UK markets include positive US job numbers and the potential for a US-China trade deal.

• Despite outflows of five billion from the UK equity market, the FTSE's dividend yield is 4.4%, above the average yield since 1985.