UK Stocks May Be World’s Cheapest But Still Don’t Appeal, Says BlackRock Strategist
- Strategist sees high interest rates hitting growth, earnings
- UK stocks are worst performers among major markets this year
The London Stock Exchange Group Plc headquarter offices in the City of London.
Photographer: Luke MacGregor/BloombergThis article is for subscribers only.
UK stocks may be the world’s cheapest, but the wall of issues facing the market means they still aren’t appealing enough to buy, according to a BlackRock strategist.
“The more the Bank of England hikes rates, the more damage it’s going to do for growth, the more damage it’s going to do for the consumer. And that’s going to show somewhere, it will show in the earnings,” Karim Chedid, head of EMEA iShares investment strategy, said in a phone interview. “It’s a cheap market, but we’re not running, we’re not overweight despite the cheap valuations.”