UK equities: mispriced opportunities abound

UK equities have been more resilient than many other world markets in 2022. This has occurred as inflation has hit multi-decade highs in the major economies such as the UK, US and Germany and interest rates have risen sharply. Equity investors showed a clear preference for the more international, largest FTSE 100 companies. Banks and the oil majors, for instance, have increased dividends and bought back considerable volumes of shares as strong commodity markets and rising interest rates have driven strong earnings growth.