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Report: The Outlook for UK equities

Valuations are a guide to the longer-term outlook, not the next couple of years
Report: The Outlook for UK equities

US equities are very dear right now according to most credible long-term valuation metrics. This points to disappointing returns over the coming years.

The same is not true of the UK’s FTSE 100, which offers decent value overall.

In this report, I explore various valuation metrics for the FTSE 100 and FTSE All-Share, and their effectiveness in predicting returns over time.

I find that current valuations are consistent with modestly positive inflation-adjusted total returns on a multi-year view.

The challenge remains how to square the implied positive outlook for UK equities with the unpromising outlook for the US.

to read the full report.