Unicorn's Hutchinson: Brexit - A short-term storm in a pint pot

Concerns over slowing global economic growth have contributed to weakness and volatility in equity markets worldwide in recent months. In addition, the uncertainty surrounding the outcome of the European referendum continues to have a negative impact on investor sentiment in the UK.

At the moment, investors are understandably sitting on their hands while they wait for clarity following the vote. This uncertainty also seems to be causing erratic price movements. However, we do not see this as a cause for concern, rather as an opportunity to further invest in companies that we already know and like, at increasingly attractive valuations. Wind the clock back 12 months and the UK equity market was experiencing a similar situation ahead of the outcome of the General Election. There was a significant widening of the valuation gap between UK large-cap stocks and the sma...