Frankfurt The new agreement between the European Union (EU) and the British government over Northern Ireland gives Goldman Sachs reason to take another look at Brexit and its consequences.
The US bank comes to the conclusion: The exit from the EU contributes to British stocks being traded at a significant valuation discount.
Conversely, this creates opportunities for investors who are patient and act primarily on fundamental data. Goldman also believes London’s industry mix is relatively benign in today’s environment.
Since the referendum that decided to leave the EU, the weight of British stocks has fallen significantly in a global comparison.
Another comparison is even more drastic. In 2016, Goldman created its own basket of shares under the abbreviation GSSTUKDE, which primarily reflects companies with a high proportion of domestic business. This basket has lost eleven percent since inception, while the world index MSCI World has gained 62 percent.
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