From Morningstar: 2025-05-07 14:20:00

The UK’s undervalued stocks may be on the brink of a turnaround post-Brexit, with Jupiter UK Multi Cap Income fund manager Adrien Gosden noting a renewed interest. UK large caps are buying back shares at record rates, while interest rates are expected to drop, making UK equity income a promising investment in the coming months.

Gosden is optimistic about the property sector, with REITs like LondonMetric Property and Segro being potential takeover targets. He also sees value in the utilities sector as a hedge against global market uncertainty, with National Grid offering an attractive dividend yield. However, the pharmaceutical sector faces uncertainty due to potential tariffs and personnel changes at the FDA.

The fund is also shifting focus towards UK domestic stocks, with holdings in companies like Sainsbury’s and Ibstock. Gosden believes that amid trade uncertainties, going all-in on UK stocks could provide more stability compared to international markets. Overall, he remains bullish on the UK market’s potential for growth and stability in the near future. 1. The stock market hit record highs today, with the S&P 500 closing at a new all-time high of 4,500. The Dow Jones Industrial Average also reached a milestone, closing above 35,000 for the first time ever.

2. In other news, the latest jobs report showed that the unemployment rate fell to 5.4% in July, with 943,000 jobs added. This beat economists’ expectations and marked a significant improvement in the labor market.

3. On the international front, tensions continue to rise between the United States and China as the two countries engage in a war of words over trade and human rights issues. The ongoing dispute has led to uncertainty in global markets.

4. Meanwhile, the COVID-19 pandemic shows no signs of slowing down, with cases surging in several states. Health officials are urging people to get vaccinated and continue practicing safety measures to help curb the spread of the virus.



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