UBS notes UK equity market effectively holds only 11‑15 stocks, far below >50 in Europe, indicating structural crowding.
US investors own 45.9% of FTSE 350 constituents while domestic investors hold just 21.7%, making the market reliant on foreign buyers.
UBS cuts UK GDP forecasts to 0.6% in 2026 and 1.1% in 2027, with CPI projected at 3.1% in 2026.
FTSE 100 forward P/E remains below MSCI Europe, FTSE 250 deeper discounted, and SMID price‑to‑book lowest among peers.