I was checking on my pension portfolio and was concern with the UK equities, was this down to Brexit.
This was the response I received from my market financial advisor
Global equities have been suffering over the last few weeks, as Covid cases rise across Europe and North America. The hopes for a further US stimulus package are dwindling ahead of the upcoming US elections. But all is not doom and gloom as we do not see a significant pull back in markets as existing stimulus measures remain in place.
UK equities continue to underperform other markets as international investors shy away, given the uncertainty of the outcome of Brexit discussions. Also the UK FTSE100 has a high concentration of value stocks, in areas such as energy and financials, which are currently out of favour but history tells us that at some point there will be a mean reversion to value investing away from growth (IT companies) but when this happens remains unclear. We are currently 9.5% underweight to the UK market compared to the benchmark, with overweight positions to North America and Europe.
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