JPMorgan turns bullish on UK stocks for the first time since the Brexit vote

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JPMorgan on Monday upgraded U.K. stocks to 'overweight,' ending years of caution on British equity markets.

The Wall Street giant had held a longstanding cautious call on U.K. equities since the EU referendum in 2016.

The Wall Street giant had held a longstanding cautious call on U.K. equities since the Brexit referendum in 2016, before moving to "neutral" in July 2020 after a particularly dire spell for U.K. stocks and after the worst of the coronavirus pandemic. JPMorgan's aggregated data showed that the U.K. has opened up a "record discount" versus other regions, both on a price-to-earnings and a price-to-book basis. The former helps determine the market value of a company's stock relative to its financial results, while the latter is relative to the book value of the company's equity.

 

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