Political risk and earnings warnings are blighting the UK equity market. But online gaming stands out from other risk-laden sectors, says City Financial's Leigh Himsworth.
With central banks in Europe contemplating a withdrawal of monetary stimulus, UK elections on the horizon and undercurrents from Russian political posturing starting to cause concern, there is no shortage of latent risk to stock markets. The FTSE All Share is currently trading at a premium to historical ratings, with a 12-month trailing P/E ratio of 13.5 times, compared with 12.5 times in 2007, which inflates the risk. Recent multiple expansion has removed a floor on prices and means that, should a company miss its earnings estimates, there is an increased risk of a harsh reaction fro...
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