U.K. Stocks Are Cheapest Since 2010 Relative to the World

(Bloomberg) -- U.K. stocks are so “cheap and unloved” that they deserve a second look -- and an overweight allocation, according to Morgan Stanley. Relative to the developed world, the market’s forward price-to-earnings ratio has slid to the lowest since 2010. Despite uncertainty over Brexit, the U.S. bank’s strategists reckon the market may be the surprising developed-market winner of 2019, thanks to cheap valuations and an asymmetric relationship with the currency.

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