BofA: UK is the 'stagflationary sick man of Europe'

'Buy humiliation'

Bank of America investment strategist Michael Hartnett has said the UK is the “stagflationary sick man of Europe”, as he urged investors to tuck away cheap and unloved UK mid-caps for the next few years.

"Heard anyone say anything good about the UK recently? Nor have we," he wrote in a research note co-authored with Elyas Galou, Anya Shelekhin and Myung-Jee Jung. The strategists also pointed to the UK's labour strikes, a "crumbling" NHS, 6% mortgage rates, UK yield curve that is the most inverted since 2000 and a UK yield differential with EM economies that is nearing historic lows. "Buy humiliation, sell hubris!" he said.  Investor forum warns of UK equities 'diminished importance' Hartnett added UK mid-caps, as seen in the FTSE 250 index, are "cheap and reviled" both on price and...