Wary investors have been sidelining U.K. markets ahead of the uncertainty. According to fund tracker EPFR Global, investors have yanked money from U.K. equity funds for 10 consecutive months. Meanwhile, global fund managers ranked the U.K. as their least favorite region to invest in, according to Bank of America Merrill Lynch’s January survey.
“Although investors may find themselves tempted by compelling valuations, the promise of better times post Brexit and a weak currency to boost multinational earnings, investors should remain cautious on UK shares and Europe more broadly,” said State Street. “The self-inflicted harm of Brexit and broader structural challenges of the EU will likely take years to repair.”
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