Is now the time to buy UK stocks?
Job Curtis, Portfolio Manager of The City of London Investment Trust, looks back at 2022 and shares his insights on inflation, the cost-of-living crisis, and UK stock market valuations. Job also touches on the dividend outlook for 2023 and the key risks investors should be mindful off.
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- 2022 was a challenging year for global equity markets. However, the UK held up relatively well, supported by the strong performance from oil and mining companies and defensive sectors such as health care and consumer staples.
- Though most of the bad news is already priced into equity markets, risks including the war in Ukraine, China’s reopening, elevated inflation, and central banks potentially overtightening will continue to dominate sentiment in 2023.
- UK dividends is forecast to rise by low single digits, with oil, mining and banking companies well placed for dividend growth. However, companies operating within retail and travel and leisure might struggle as consumers tighten their belts.
These are the views of the author at the time of publication and may differ from the views of other individuals/teams at Janus Henderson Investors. Any securities, funds, sectors and indices mentioned within this article do not constitute or form part of any offer or solicitation to buy or sell them.
Past performance does not predict future returns. The value of an investment and the income from it can fall as well as rise and you may not get back the amount originally invested.
The information in this article does not qualify as an investment recommendation.
Please read the following important information regarding funds related to this article.
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