Best UK picks for cloudy outlook
In what do you invest when the economic outlook is weak? Investment bank UBS thinks it has the answer.
The UK economic picture is becoming more uncertain with business output falling to a four-year low, according to the latest BDO Output Index (10 Jul).
UBS cautions ‘macro momentum, earnings momentum and, arguably, the political backdrop are all deteriorating relative to Europe’.
It also notes earnings momentum turned negative in June with UK companies now seeing more earnings downgrades than upgrades.
In this context, its team of analysts reckon internationally exposed sectors such as pharmaceuticals and telecoms are best placed to prosper.
Despite this preference for overseas exposure, UBS sees the weaker economic picture as being priced in to certain domestic stocks.
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Shares is provided for your general information and use and is not a personal recommendation to invest. It is not intended to be relied upon by you in making or not making any investment decisions. The investments referred to in these articles will not be suitable for all investors. If in doubt please seek appropriate independent financial advice.
Investors acting on the information in these articles do so at their own risk and AJ Bell Media and its staff do not accept liability for losses suffered by investors as a result of their investment decisions.
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