UK equities have been haunting multi asset investors' portfolios, cursing them with poor returns for several years. The unpopular makeup of the FTSE 100, a market devoid of almost all things technology based but heavy on big oil and big banks - plus the looming spectre of Brexit - has scared many investors away.
In fact, the UK is now so unpopular that it is now "normal" for UK managers to no longer hold a significant portion of their portfolios in UK assets. Can anybody dare to imagine the horror show if the US retail and institutional investors ever went down the same track? Now that would be genuinely scary. This already difficult situation was compounded in February this year as investors swiftly decided which stocks were likely to succeed in pandemic conditions and which should be discounted or sold completely. A Nightmare on Regent Street? The ghost of retail past even store credit...
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