If you want to stay ahead of the herd, now's the time to buy and HOLD

How time flies. It is nearly ten years to the day since the Bank of England triggered a cut in Base Rate in a seemingly last-ditch attempt to pull the UK economy out of a frightening recession sparked by the financial crisis.

The reduction meant the interest rate of 0.5 per cent was at its lowest since the Bank was founded in 1694. 

A drastic step when it looked as if the country was going to hell in a handcart as the stock market plunged to new depths. 

Changes: Of the ten best performing shares in today’s FTSE 100 Index, eight were not part of it in 2009

Of the ten best performing shares in today’s FTSE 100 Index (see table above), eight were not part of it in 2009. They include household names such as Rightmove and housebuilders Taylor Wimpey and Barratt Developments.

William Meadon and Callum Abbot are managers of JPM Claverhouse, an investment trust with exposure to a broad range of companies listed on the UK stock market. 

Their view on the outlook for UK equities is simple – they believe the UK stock market represents good value (especially when measured against UK gilts); offers some of the best dividends in the world (only the stock markets of Russia and Australia have higher average yields); and that all the pessimism (fuelled by Brexit) is somewhat overdone.

Given less than 30 per cent of revenues generated by FTSE All Share companies are derived in this country, they argue a long-term investment right now in the UK stock market (through a fund or trust) represents an opportunity to buy an outstanding ‘global portfolio’ at a knock-down price. Long-term investors need only apply.