According to JP Morgan, UK equities are cheap. That is a bold call. What is certainly true is that over the past six years the British stock market has been by some margin the worst performer of any leading market. Since the self-inflicted economic wound of the Brexit referendum, UK equities have lagged US stocks by a staggering 50 per cent and eurozone stocks by 24 per cent. What’s more, the UK stock market is the only big market yet to have regained its pre-pandemic high. Pre-2016, UK stocks traded on a par with the MSCI World index in terms of forward price-earnings ratios; now they trade at a 40 per cent discount. On a price-to-book basis, the UK also trades at a record discount.