SEDG - EWU: Why U.K. Stocks Are Poised For A Comeback

2024-07-08 07:00:00 ET

Summary

• The recent Labour party victory in the UK promises greater political stability and a focus on economic growth, clean energy, and improved public services, which could positively impact UK stocks.
• UK stocks are currently undervalued compared to other developed markets, offering a potential opportunity for investors, especially with the British Pound also appearing undervalued.
• The expected policies favor sectors like house-building and renewable energy, while oil and gas companies may face challenges due to stricter regulations on new projects.

This is a good time to take a fresh look at UK stocks now that a new government has been elected, and there is hope that it will bring more clarity and stability for the next five years. The last ten years have seen UK stocks dramatically underperform the U.S. market. For example, the iShares MSCI United Kingdom ETF ( EWU ) has delivered only about a tenth of the total return that the Vanguard Total Stock Market ETF ( VTI ) delivered....

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