UBS Report: UK equities
UK equities: Which stocks are most exposed to Brexit?
In our House view Tactical allocation we are neutral on UK equities. Whilst the valuation is attractive, the uncertainties around Brexit and commodities give us low visibility.
Under a Brexit deal scenario we anticipate domestic stocks to outperform international stocks, and for FTSE 250 to outperform FTSE 100. Under a no deal scenario we expect the reverse. For investors wishing to take a view on the outcome, we offer one list of FTSE 100 single stocks with high domestic exposure and another with high international exposure.
Our preferred strategies within the UK are UK quality and UK diversified dividends, which should perform well under either Brexit outcome.