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

Vincent Deluard, a market strategist at StoneX, has pointed to British equities as a potentially overlooked opportunity, describing them as a "most hated, under-owned asset class." The observation reflects a familiar pattern in markets: when sentiment toward an asset class turns deeply negative and positioning becomes light, the bar for positive surprises can fall. That does not guarantee a rebound, but it can change the risk-reward calculus for investors willing to look beyond consensus.

Deluard pairs the UK equity idea with a currency trade that shorts the euro against the Japanese yen. The combination matters because returns for international investors come from two sources: the performance of the equities themselves and the movement of exchange rates. A paired structure suggests the strategist sees the equity view and the currency view as complementary rather than separate bets.

For observers, the takeaway is less about any single trade and more about the framework. Watch UK equity valuations and foreign flows, euro-area growth data, and Bank of Japan policy signals. Those are the variables that would either validate or undermine the thesis over time.