Two things stand out in the UK stock market. For the bulls, on valuation grounds shares in many companies look strikingly cheap.
For the bears the background fundamentals both globally and domestically are still deteriorating. This offers a double opportunity for investors. In the short term I suspect there is still money to be made from short sales of shares in vulnerable companies. In the longer term the bricks are falling into place for a huge new bull market.
When shares are on PE ratios in low single figures they can double or treble and still look fair value. Cheapness alone does not make shares go up; they need a catalyst, ideally in the form of an improving economic background. For many companies that catalyst is not yet on the horizon.
Phenomenal profits
...
