It might be time to consider the ‘most hated, under-owned asset class,’ says this strategist

Vincent Deluard, market strategist at StoneX, has put forward an idea that runs against prevailing sentiment: British equities, which he describes as the "most hated, under-owned asset class." His recommendation pairs a position in UK stocks with a currency trade that shorts the euro against the Japanese yen.

The logic rests on relative valuation and positioning rather than momentum. When an asset class is widely avoided, it often trades at a discount to its history and to peers, which can matter if sentiment shifts. The currency leg adds a second dimension, expressing a view on the euro-yen pair alongside the equity exposure.

For observers, the takeaway is less about following the trade than about the framework. UK equities have lagged other developed markets for years, and persistent outflows can create conditions where marginal good news has an outsized effect. What to watch: whether valuation gaps narrow, whether UK earnings and dividend trends hold up, and how euro-yen moves interact with the equity position.