Opportunities in one of the world’s most undervalued stock markets

At around 11x times forward earnings, UK equities are the cheapest they’ve been since the 2008 financial crisis apart from COVID, and they are the cheapest in the developed world. Even relative to their own history, UK equities are trading at 20% discount, vs the US at a 15% premium.   

While the rest of the developed world is seeing inflation rapidly fall, goods inflation has remained stickier in the UK, leading the market to assume that the Bank of England will have to remain relatively tight. This is weighing on sentiment and equity valuations.  

So, is the UK economy structurally different from the rest of the developed world or can inflation fall faster than the market expects? And can a shift in inflation expectations be the positive catalyst to take UK equities higher?

In this podcast episode, Alison Savas and James Rodda discuss the UK’s macro environment and market outlook, along with Antipodes’ three largest UK-listed holdings; Diageo, Tesco, and NatWest. 



Key Times:

  • Inflation in the UK & macro outlook: 1:30
  • Diageo (LON: DGE): 6:30
  • Tesco (LON: TSCO): 13:40
  • NatWest Group (LON: NWG): 21:20

*Stock commentary in this episode is illustrative only and should not be considered as recommendations to buy, hold, or sell any security. 

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All content in respect of the Antipodes Global Shares (Quoted Managed Fund) (ARSN 625 560 269), the Antipodes Global Fund – Long (ARSN 118 075 764), the Antipodes Global Fund (ARSN 087 719 515), and the Antipodes Emerging Markets (Managed Fund) (ARSN 096 451 393) is issued by Pinnacle Fund Services Limited ABN 29 082 494 371 AFSL 238 371 (“PFSL”) as responsible entity of the Funds and is prepared by Antipodes Partners Limited (ABN 29 602 042 035) (AFSL 481580) (“Antipodes”) as the investment manager of the Trust. PFSL is not licensed to provide financial product advice.
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31 August 2023