Often, the best returns can be found by looking at the most beat-up sectors or stocks. As they say, every dog has its day. Today, the biggest dogs can be found in the United Kingdom. Ever since that little political event known as Brexit, the U.K. has been in the proverbial doghouse. And there’s good reason for that. Leaving the Eurozone will have plenty of effects, with most of them coming in on the bad side.
But even with Brexit looming, stocks in the U.K. can still offer some tantalizing bargains for investors.
For investors, the long-term picture and current Brexit discount on U.K. stocks could provide the perfect opportunity for portfolios.
U.K. Stocks & Brexit
To say that Brexit shocked the world would be an understatement. The decision to leave the 28-nation European Union was met with plenty of market skepticism and lower returns for U.K. stocks. After all, leaving such an immersive set of economic, humanitarian and trade rules is a big deal. No one knows exactly how it will work out for the United Kingdom. However, many economists and policymakers expect the near term to be quite rocky for the U.K. economy, especially if it ends up being a so-called “hard Brexit” and completely ends its E.U. relationship.
