UK shares as cheap as 2008, says Temple Bar manager: Investing Show
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INVESTMENT SHOW: The UK stock market is cheap and looks as interesting as it did in 2008, says Temple Bar manager Ian Lance
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Doom and gloom dominate the headlines, but investors are too pessimistic, says Temple Bar manager Ian Lance.
He says: ‘Today we think it’s a very interesting environment. We’d even go so far as to say it’s as interesting as 2008 and 2000, the last two times we think we’ve seen bargains of this nature.’
“At the moment we think the UK is a very cheap market.”
The value investor looks for shunned stocks that are trading at least 50 percent below their net asset value and looks, over a five-year period, at what they should be worth if they recover.
Lance, co-manager of Temple Bar Investment Trust alongside Nick Purves, says that while the UK stock market has fallen less this year than its international counterparts, there are still plenty of bargains for value investors.
He discusses his views on where the value lies in the UK and elsewhere in the world in this episode of the Investing Show, with This is Money’s Simon Lambert and Interactive Investor’s Richard Hunter.
BP shares have more than doubled since their pandemic low, but remain a good value, says Lance
Ian explains why he considers Marks & Spencer to be significantly undervalued and why, despite BP’s massive share price appreciation since the depths of the pandemic, the energy giant also remains a good value and undervalued by investors.
Temple Bar is part of the Association of Investment Companies UK Equity Income sector and is the best performing trust in that sector over the past year, with a total return of 8.48 per cent. It yields 4.1 percent and the ongoing charges amount to 0.57 percent.
Redwheel Capital, Lance’s company, took over management of Temple Bar two years ago. Over five years, confidence has returned 11 percent, compared to an industry average of 20.5 percent.