“Where there have been good games and you could take profits off the table, you should look no further than the housebuilders or the consumer sectors,” he said.
“In the immediate aftermath, these areas will come under pressure so that is something investors might want to take advantage of.
“At this point in time, having a UK portfolio that is balanced between domestic cyclicals and high quality, internationally focused businesses is probably a sensible blend.”
John Stopford, Investec Asset management’s co-head of multi-asset, argued that there could be better opportunities in the more domestically focused stocks than the mega-caps of the FTSE 100.
One of the reasons Stopford doesn’t have a lot of exposure to UK equities is the fact that having exposure to FTSE 100 companies hinges on the behaviour of sterling.
“The FTSE 100 is just another play on sterling, which makes it a derivative to some extent, even though you can pick good companies within that,” he said.
By contrast, while the “FTSE 250 more vulnerable to negative sentiment toward the UK and growth but obviously, if you get fiscal easing, that could be supportive for certain sectors.”
