Many Happy Returns Beyond the Gloom: The UK's Hidden Stock Winners, with Ed Croft
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Oct 29, 2025 In this insightful discussion, Ed Croft, founder of Stockopedia and market analyst, shares his expertise on the UK's fluctuating stock market. He explains why it’s traded at a discount, driven by factors like Brexit and a cultural bias for dividends. Ed highlights sector winners like defence and gold miners, while proposing a value-momentum strategy for investors. He also tackles the impact of politics on the market and defines 'value traps,' offering tips on how to navigate them. Key insights for savvy investing!
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Why The UK Trades At A Persistent Discount
- Brexit, pension de-risking and structural factors have driven long-term outflows and depressed UK valuations.
- Lower ownership, stamp duty and sector composition explain why the UK trades at a persistent discount.
Hidden Sector Winners In The UK
- Several UK sectors have quietly outperformed despite negative sentiment, including defence, gold miners and government contractors.
- Sector rotation and niche contracts can rapidly re-rate companies when perceptions change.
Financials Showing A Momentum Turn
- Financials and wealth managers have been turning from multi-year losers into one-year winners with strong momentum.
- Stocks that were three-to-five year losers can produce powerful rebounds when momentum returns.
