239. Why banks are the most exciting investment in the UK today

Alex Wright, manager of the Fidelity Special Values investment trust, explains to us how the UK’s largest 100 companies can be trading cheaply, even though the index has hit an all-time-high. He discusses the different areas of the UK stock market and tells us why he thinks banks are the most exciting sector for investors today. Alex also discusses the importance of dividends and tells us why he prefers a couple of European companies over their UK peers. What’s covered in this episode:Does the FTSE 100 reaching an all-time high mean it’s too expensive now?What’s more attractive? Small, mid, or large cap stocks?Limiting share price falls in a tough environmentWhy the manager is increasing exposure to banks and financialsWhy banks such as NatWest look interestingHow recession impacts the banking sectorWhat type of company could help recession proof your portfolioHow dividends are important for total returnsWhen the manager considers oversees companies versus their UK counterpartsHow the demand for gas has impacted holding OMV More about this trust:Launched in 1994, Fidelity Special Values aims to achieve capital growth by investing primarily in unloved UK companies and waiting for them to come back into favour. Each holding must meet two strict criteria. The first is the preservation of investors’ capital: the managers aim to do this by choosing companies with exceptionally cheap valuations or an asset, such as intellectual property or inventory, which has the potential to limit share price falls. Secondly, they look for companies where there is a catalyst for significant earnings growth.Learn more on fundcalibre.comPlease remember, we’ve been discussing individual companies to bring investing to life for you. It’s not a recommendation to buy or sell. The fund may or may not still hold these companies at the time of listening. Elite Ratings are based on FundCalibre’s research methodology and are the opinion of FundCalibre’s research team only.Learn more on fundcalibre.comPlease remember, we’ve been discussing individual companies to bring investing to life for you. It’s not a recommendation to buy or sell. The fund may or may not still hold these companies at the time of listening. Elite Ratings are based on FundCalibre’s research methodology and are the opinion of FundCalibre’s research team only.