The US is expensive and the UK is unloved, so it’s time to be picky: The Investing Show on where to invest in tricky times
The US is home to the world’s most exciting companies, but also to some seriously overvalued shares.
The UK stock market is unloved, but can it be undervalued with the threat of a no-deal Brexit hanging over us.
All this means that investors need to be picky, says Tom Becket, chief investment officer of Psigma Investment Management, who says that the time for simply buying the market and hoping for the best is over.
He joins us on the Investing Show to reflect on a recent trip to the US, explaining how President Trump’s economic plans are working out and why although Main Street may be doing better, a divide still remains between it, Wall Street and, of course, Silicon Valley.
The more than 20 per cent falls from their peaks in the share prices of the so-called Faang stocks – Facebook, Amazon, Apple, Netflix and Google – has highlighted how even some of the best companies in the US market are at risk of changes in sentiment.
But with the US market making up more than half of the global stock market, investors cannot afford to ignore it completely.
At home in the UK, investors also face a conundrum, with shares beaten down by concerns over what Brexit will mean for companies – although some will benefit from a weaker pound.
Tom joins Simon Lambert, of This is Money, and Richard Hunter, of Interactive Investor, to talk through the US, the UK and opportunities elsewhere in the world.
Is the Santa rally real?
The approach of December always brings talk of the prospect of a Santa rally, with the suggestion that shares usually rise during the month.
Is this a genuine trend? We look back over 20 years, with the help of some data from Richard Hunter, while Nick Batsford, of Core London, talks us through some chart signals.