It has been a long time since anyone from overseas tipped British shares. So when Brian Chingono of US investment firm Verdad recently wrote an article entitled “Rule, Britannia!” it was time to take notice. Chingono says the UK “seems mired in 1970s-style stagnation”. He adds that “Brexit seems to have been a negative inflection point” for small firms’ valuations and corporate margin spreads, the difference between UK and European profit margins. He compares these for the three years up to 2020 with the three years after, which appears to support the argument of a modest fall in margins (from 11.8% to 10.5%) and a larger one on spreads
