The Íindex MSCI UK generally underperformed the rest of the Íindex MSCI World of developed market (DM) stocks for much of 2020. Market strategists Capital Economics They believe that the British stock market will outperform its counterparts in the rest of the world this year, as some of the obstacles it faced in 2020 are mitigated or even act as stimuli.
“The larger performance gaps (such as in the information technology, communications services, and consumer discretionary sectors) can largely be explained by the stellar performance of some of the largest US-listed technology stocks. As these big tech companies benefited the most from the pandemic-induced restrictions, we do not expect them to perform as well once vaccines allow restrictions to be eased this year. “
“Now that the uncertainty about the future relationship of the UK and the EU has dissipated and a “no-deal” scenario has been avoided, we believe that the discount with which the british bag has been trading since 2016 to gradually disappear, rather than expand further. “
“We anticipate that Íindex MSCI UK end the year around 2,100, an increase of ~ 16% from its current level, compared to our forecast for an increase of ~ 8% from MSCI USA Index and a ~ 10% increase in MSCI EMU Index. This translates into a forecast that the FTSE 100 end the year around 7,500, compared to 4,200 for the S&P 500“.
.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
