Important information: The value of investments and the income from them, can go down as well as up, so you may get back less than you invest.
Say it quietly, but 2021 could be the UK’s year. Investors have long been put off our home market by Brexit concerns and, more recently, our slow recovery from last year’s falls. But with Brexit behind us and the vaccine rollout in full swing, a bounce back could be on the cards.
This series covers everything you need to know about investing in the UK in this changed landscape.
1 - Why now?
Brexit has long left the UK in the lurch. So why do investors suddenly feel optimistic about this small, pariah market? Tom Stevenson, Investment Director here at Fidelity, explores what’s going on here.
2 - What are you buying?
Our home market may have lagged the global recovery, but our largest companies have a surprisingly international feel to them. More domestic-facing companies are generally found lower down the cap-scale. Understanding this relationship could be key when deciding how best to play a UK recovery, as you’ll discover here.
3 - Growth or value?
Two styles have long dominated investors’ style guides - growth and value. Generally speaking, the UK is more value-focussed than the growth-heavy US and Chinese markets. That’s hurt us in recent years, but things could finally be looking up for companies with a value bias. I explore the growth vs value divide, and what it means for a UK recovery, here.
4 - Where to find an income
Investors have long looked to our shores as a haven for trusty dividend-paying stocks. Last year, however, many companies chose to cut or cancel their dividend payments in order to cope with COVID-induced volatility. The subsequent ‘dividend bonfire’ left many income-seekers lingering in the dark. I look at the prospects for UK income here.
Important information: Investors should note that the views expressed may no longer be current and may have already been acted upon. Select 50 is not a personal recommendation to buy or sell a fund. This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to an authorised financial adviser.