Seven Black Friday bargains
By Sonia Rach, 24 Nov 17
Consumers in the UK and globally will seek out bargains on Black Friday, but what about the investment world? Here are the views of seven managers and areas in the market that they see as undervalued.
Considering the UK economy, Phil Harris, manager of the EdenTree UK Equity Growth Fund suggests it is important to consider the “power and dominance of consumer spending within the UK economy” and the potential impact if “consumer confidence takes a knock over Brexit”.
Although Black Friday sales should provide a good insight in to spending, Harris said that “from an investment perspective, we are finding it is not necessarily a case of ‘if’ consumers are spending, but ‘how’.”
He added: “Despite unemployment rates being at historic lows, wage growth in the UK is faltering. Spending power is being tested by 3% inflation, as annual wage growth is about 2%. While some of these pressures should ease going forward household budgets are likely to remain under pressure.
“It is likely people will spend less on big ticket items, such as cars or furniture, and switch focus to the little luxuries in life – going out for coffee or ordering a takeaway.”
Tags: Antipodes Partners | Ashburton | Cohen & Steers | Edentree | Federated Hermes
