{"id":314,"date":"2019-01-13T06:47:23","date_gmt":"2019-01-13T06:47:23","guid":{"rendered":"http:\/\/forefrontnews.cn\/finance2news\/?p=314"},"modified":"2019-01-13T06:47:23","modified_gmt":"2019-01-13T06:47:23","slug":"is-it-time-to-buy-into-unloved-uk-shares-minor-investor","status":"publish","type":"post","link":"http:\/\/forefrontnews.cn\/?p=314","title":{"rendered":"Is it time to buy into unloved UK shares? Minor Investor"},"content":{"rendered":"

When investing it often pays to do the opposite of what others are doing.<\/p>\n

Of course, there are some caveats to this. Most investors will tell you they are a contrarian \u2013 and they can\u2019t all be. Meanwhile, adopting a strategy of just buying all the rubbish others are selling is not necessarily a winner.<\/p>\n

Nonetheless, swimming against the tide has a history of success.<\/p>\n

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This chart using Research Affiliates data shows the UK stock market’s CAPE ratio at 14.1 at the end of August 2017, which stands at about the long-term median. This makes the UK market neither cheap nor expensive historically, indicating decent but not knockout returns<\/p>\n

The problem with the contrarian scenario is that unpopular as it is, the UK stock market isn\u2019t particularly cheap.<\/p>\n

The price to earnings ratio is flashing red at 31, according to data from Star Capital, while the longer-term view offered by the CAPE ratio (cyclically adjusted price to earnings) shows a reading at the end of August of 14, pretty much on the long-term median, according to Research Affiliates data.<\/p>\n

I prefer to pay more attention to CAPE\u2019s ten-year view than the volatile one-year PE ratio and it bodes well for decent but not spectacular returns.<\/p>\n

While I\u2019m more of a fan of the long-term growth potential of Asia\u2019s emerging middle-class \u2013 and not entirely convinced we\u2019ll pull off Brexit without shooting ourselves in the foot \u2013 the fact that others don\u2019t like the UK interests me.<\/p>\n

I\u2019m interested particularly in the bits of the UK that people don\u2019t like, so I will be looking for some investment trusts and funds with a value or recovery perspective.<\/p>\n

I wouldn\u2019t bet my flat on it, but buying a bit more unloved stuff in the unloved country doesn\u2019t seem a bad idea.\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"

When investing it often pays to do the opposite of what others are doing. Of course, there are some caveats to this. Most investors will tell you they are a… <\/p>\n","protected":false},"author":1,"featured_media":315,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[257],"tags":[152,52,14,56,151],"views":79,"_links":{"self":[{"href":"http:\/\/forefrontnews.cn\/index.php?rest_route=\/wp\/v2\/posts\/314"}],"collection":[{"href":"http:\/\/forefrontnews.cn\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/forefrontnews.cn\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/forefrontnews.cn\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/forefrontnews.cn\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=314"}],"version-history":[{"count":0,"href":"http:\/\/forefrontnews.cn\/index.php?rest_route=\/wp\/v2\/posts\/314\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/forefrontnews.cn\/index.php?rest_route=\/wp\/v2\/media\/315"}],"wp:attachment":[{"href":"http:\/\/forefrontnews.cn\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=314"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/forefrontnews.cn\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=314"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/forefrontnews.cn\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=314"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}