Talk is rife that the British stock market is seriously cheap (Miles Costello writes). Shares are trading at 50-year lows, according to some analysts, and are heavily underperforming relative to their international counterparts in the United States and on the Continent. Some investors are sensing an opportunity.
Shares in Mercantile Investment Trust have rallied strongly since late September, with investors believing that its concentrated exposure to the UK market means that it is well placed to benefit from any recovery. It’s a brave bet, particularly as the effects of the coronavirus have savaged this vehicle’s returns for much of this year and as Britain begins a second lockdown.
Mercantile Investment Trust was launched in 1884 and is one of the oldest vehicles of its kind.
