The world’s least favored stocks shine in 2021

The British FTSE 100 signs a spectacular start to the year despite the new confinement

London, the city most affected by the appearance of a new strain of the coronavirus in the United Kingdom. EFE / Archive

Just when the United Kingdom Entering another national lockdown, the stars align for British stocks, which have long suffered the most.

Fresh off its worst annual drop in over a decade, the benchmark FTSE 100 posted a great start to the year. It has recovered 6.4% so far in 2021, helped by a long-awaited Brexit deal and global growth optimism.

Investors are also investing in the country’s exchange-traded funds.


The commercial agreement with the European Union removed a key hurdle for UK assets, just as undervalued FTSE 100 stocks are being sued amid expectations of a global economic rebound.

Investors look beyond the pandemic

Many analysts and investors are looking beyond the latest pandemic restrictions, citing the vaccine launches and the potential for more American stimulus with the Democrats in charge of the Senate as reasons for their optimism about the longer-term outlook for the stocks.

“Prevailing negative investor sentiment and associated discount valuations for UK equities now create some interesting investment opportunities,” he said. Chris Dyer, director de renta variable global de Eaton Vance.

“The future looks more promising for the UK market and equities, although investors should remember that Brexit will continue to be a drag on the UK economy for years to come,” he added.

Investors such as Toscafund Asset Management and Eaton Vance, as well as strategists from firms such as Goldman Sachs, Citigroup, y UBS they are bullish on UK stocks after the Brexit deal.

Cyclical momentum

Mining companies, energy stocks and banks boosted the FTSE 100 in the first week of operations of the year. Investors backed cyclical sectors around the world with speculation that additional US stimulus will stimulate the economy under the Democrats, and oil soared after an OPEC compromise on production cuts.

Index heavyweights like Rio Tinto Group, Royal Dutch Shell Plc and BP rose 13% or more.

Strong exposure to these sectors and a large number of global franchises make the FTSE 100 one of Europe’s best recovery prospects in 2021, according to strategists from Bloomberg Intelligence Tim Craighead y Laurent Douillet.

In a note last week, they called the market one of the “bastions of value” in the entire region.

The most underweight stocks

UK equities were the world’s most popular underweight for months, according to the survey of fund managers from Bank of America . So low has the performance of UK stocks been that they would have to rise 80% relative to the rest of the world to return to their relative values ​​over the medium term, Toscafund’s chief economist wrote, Savvas Savouri, in a note of January 6.

The British FTSE 100 signs a spectacular start to the year despite the new confinement


London, the city most affected by the appearance of a new strain of the coronavirus in the United Kingdom. EFE / Archive

Just when the United Kingdom Entering another national lockdown, the stars align for British stocks, which have long suffered the most.

Fresh off its worst annual drop in over a decade, the benchmark FTSE 100 posted a great start to the year. It has recovered 6.4% so far in 2021, helped by a long-awaited Brexit deal and global growth optimism.

Investors are also investing in the country’s exchange-traded funds.


The commercial agreement with the European Union removed a key hurdle for UK assets, just as undervalued FTSE 100 stocks are being sued amid expectations of a global economic rebound.

Investors look beyond the pandemic

Many analysts and investors are looking beyond the latest pandemic restrictions, citing the vaccine launches and the potential for more American stimulus with the Democrats in charge of the Senate as reasons for their optimism about the longer-term outlook for the stocks.

“Prevailing negative investor sentiment and associated discount valuations for UK equities now create some interesting investment opportunities,” he said. Chris Dyer, director de renta variable global de Eaton Vance.

“The future looks more promising for the UK market and equities, although investors should remember that Brexit will continue to be a drag on the UK economy for years to come,” he added.

Investors such as Toscafund Asset Management and Eaton Vance, as well as strategists from firms such as Goldman Sachs, Citigroup, y UBS they are bullish on UK stocks after the Brexit deal.

Cyclical momentum

Mining companies, energy stocks and banks boosted the FTSE 100 in the first week of operations of the year. Investors backed cyclical sectors around the world with speculation that additional US stimulus will stimulate the economy under the Democrats, and oil soared after an OPEC compromise on production cuts.

Index heavyweights like Rio Tinto Group, Royal Dutch Shell Plc and BP rose 13% or more.

Strong exposure to these sectors and a large number of global franchises make the FTSE 100 one of Europe’s best recovery prospects in 2021, according to strategists from Bloomberg Intelligence Tim Craighead y Laurent Douillet.

In a note last week, they called the market one of the “bastions of value” in the entire region.

The most underweight stocks

UK equities were the world’s most popular underweight for months, according to the survey of fund managers from Bank of America . So low has the performance of UK stocks been that they would have to rise 80% relative to the rest of the world to return to their relative values ​​over the medium term, Toscafund’s chief economist wrote, Savvas Savouri, in a note of January 6.