Large caps offering value

Large-cap stocks are attractive, with valuations having fallen below those of small-cap stocks for the first time in years, according to Colin Morton, manager of the BWD UK Equity Income trust and the BWD UK Blue Chip Growth. The market is good value, not in relative terms but in absolute terms, he said. Heading into the last week of July, the rating for large-cap stocks fell below that of mid caps. Within days it had rebounded, providing a 10% uplift in investments in the large-cap area of the market, while mid and small-caps remained quite flat, Morton said. In addition, the yields ...