According to a recent Wall Street bank poll, investors in America have shown a preference for the UK stock market over European alternatives. The survey, conducted by the Bank of America, revealed that the UK stock market is the top choice for investors in European indexes.
In the survey, conducted between July and August, there was a significant increase in the number of respondents who expressed their intention to take outsized stakes in UK stocks over the next year. The percentage of respondents who claimed they would hold an “overweight” proportion of UK equities compared to the benchmark index jumped from less than 10% in July to more than net 30%.
Following the UK market, respondents also expressed a preference for Swiss equities, followed by stocks in Italy, France, and Spain. On the other hand, the German market was the least favored among investors, with more than net 30% of respondents indicating they would be “underweight” on these stocks. This marks a slight change from the previous month when the UK and Spain were tied for the top spot.
This shift in preference towards the UK market represents a significant change from 18 months ago when UK stocks were the least popular on a global scale. At that time, the UK market faced challenges due to high inflation and a dramatic selloff in British assets following controversial fiscal policies proposed by then-Prime Minister Liz Truss. This recent survey included 122 participants with $265 billion in assets and was conducted between August 2 and August 8.
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