With the upcoming voting in parliament for the Brexit deal with the EU, everyone is wondering if there is value in the shares of the island.
According to Morgan Stanley's strategist, Krupa Patel, the answer to the question is yes. Despite the uncertainty, he sees plenty of reasons for buying UK stocks. The main reason, of course, is that they are currently cheap and unloved by investors.
According to analysts of Morgan and Citigroup, the stock market in the UK is "uninvestable" because of the political uncertainty that pushes pounds sharply in both directions and the valuation of shares is distorted.
However, the bank recommends recommend buying domestically focused British stocks versus exporters -- but only if political uncertainty fades.
Source: Bloomberg Finance L.P.
Chart: Used with permission from Bloomberg Finance L.P.
Original post: U.K. Stocks May Be Your Shock 2019 Winner, Morgan Stanley Says
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