Buxton looks to 'controversial' UK domestics

Richard Buxton has "controversially" started investing in UK domestic stocks despite the significant headwinds facing consumers this year.

The head of UK equities and manager of the £2.8bn Schroder UK Alpha Plus fund said he has recently been adding to domestic names such as Debenhams, Next, Home Retail Group and Taylor Wimpey in the view they are very cheap. He said: “They are trading on six to seven times earnings, and they are beginning to outperform. People have suggested domestic stocks could face a 30%-40% profit downgrade, but this is not happening.” Buxton also believes there is still money to be made in mining stocks over the next couple of years. “I am a believer of the ‘stronger for longer’ view on commodi...