Invesco's Mallon: Food and pharma stocks still good value

Ciaran Mallon on UK Income

The recent sector rotation has thrown up a number of oversold and underloved sectors which could prove good value - including food retailing, explains Ciaran Mallon, growth and income manager at Invesco Perpetual.

The rise in the UK stock market over the past two years has been fuelled by monetary stimulus and central bank policy initiatives, but has not been matched by an increase in forecasts for company earnings growth for the current financial year and beyond. Equity valuations are therefore no longer as cheap as they were previously. There are also concerns about the outlook for the global economy which I expect will remain a feature of the market, and that equity volatility may rise from the currently low levels. Oversold sectors However, within the market as a whole, there is still a ...