Strategic Equity Capital
May 2021: An update from investment managers Ken Wotton and Adam Khanbhai
As lockdown restrictions in the UK begin to ease and progress continues in the penetration of the national vaccine roll-out, there is some cause for optimism that the economy can rebound rapidly as the year progresses. This, in turn, could stimulate asset allocators to re-evaluate the significant discount being applied to the UK, and to UK smaller companies in particular, due to their perceived domestic focus. There are some signs that discounts are starting to narrow and as markets reopen and earnings recover it could provide a strong tailwind for share prices.