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BAML Says Time Is Right For UK Stocks

Published 2018-05-18, 07:04 a/m
Updated 2018-05-18, 07:04 a/m

Investing.com  - Investors looking for European exposure, should consider the UK, according to Bank of America Merrill Lynch (NYSE:BAC).
The Wall Street firm says the FTSE 100 index is attractive because it contains a large number of companies that perform well in the later stages of economic expansions, and its dividend yield is 4.00%.
Commodities -- oil and gas -- and basic resources make up 24% of the companies in the index, while defensives -- health care, utilities -- account for 21%.
BAML says the weak pound is also a positive because UK multinationals derive  about 70% of their revenue from overseas markets.
Two popular exchange traded funds to play the FTSE 100 are the iShares MSCI United Kingdom ETF and the First Trust United Kingdom AlphaDEX Fund.

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