Cinema tickets, traffic jams, office footfall, web conferencing, even private jet leasing: investors are parsing motley metrics for clues about how to make money when a major economy reopens.
Britain’s blistering COVID-19 vaccine rollout is helping its economy open quicker than much of continental Europe, potentially providing a blueprint for investors trying to map how the recovery trade will play out across the rest of the region.
The United Kingdom has been gradually loosening restrictions, with much of the country set to fully reopen on June 21, and consumers who have accumulated savings during lockdowns are starting to spend.
As a result, international investors who had largely shunned UK stocks since the 2016 Brexit referendum are back; they now hold the biggest British “overweight” – their UK share holdings relative to Britain’s size in global equity benchmarks – in seven years, BofA’s monthly survey of fund managers shows.
“The UK suffered disproportionately from the lockdown, and is now rebounding stronger and faster than other...read more...