UK stocks cheap says GLG

UK stocks are cheap and could jump when markets see Britain is not entering a double-dip recession, according to GLG Partners' head of UK equities.

John White says fears of a double-dip recession are "significantly overdone", with the £155bn deficit better than 2009 consensus forecasts of £185bn. "Deficits are very pro-cyclical; they get materially better as the interest cost of the burden decreases. I'm not sure the market has really understood that yet," White says. When markets grasp the Treasury will have to borrow less than forecast, White says they could view the UK economy and investments in a more positive light. "As soon as the market begins to realise that gilt issuance is not going to be £180bn over the next 12 mont...