As London and Brussels discuss the terms of their divorce, investors are pondering where to put their money. But the answer is as divided as the British electorate over the decision to leave the European Union.
Health care, real estate and technology stocks seem to be among the top choices to navigate through Brexit, but financials and utilities might also offer attractive offers, investors have told CNBC. When it comes to companies' size, however, their answers are even more divided.
"Large cap U.K. equities have traded primarily on sterling whereas small cap equities have been much less sensitive. The correlation between the MSCI U.K. index and the trade-weighted exchange rate is nearly 40 percent, whereas it's close to zero for small cap. So in terms of resilience you could cite small cap equities," Daniel Morris, senior investment strategist at BNP Paribas Asset Management, told CNBC via email on Thursday.
On the other hand, the investment strategy team at Citi bank said in a note that it's underweight in U.K. small and mid-cap equities. "Overall, domestics sectors are likely to weaken further even if a recession is avoided," the bank said, adding, "large-caps should be more defensive, with support from the average dividend yield of over 3 percent as well as 70 percent of revenues coming from overseas."