The FTSE 100 might be your best investment option amid growing domestic volatility in the U.K. economy, analysts at JP Morgan said.
There are three reasons increasing the attractiveness of U.K. stocks: global valuations are too high, U.K. valuations are cheap and they're affected by global growth, which looks solid at the moment.
"Despite popular skittishness, U.K. valuations actually look very good," James Illsley, fund manager at JP Morgan U.K. Equity Core fund, said in a note to investors.
"The market itself is cheap. Valuations are actually about 20 percent below long-term averages, on a cyclically adjusted price-to-earnings ratio. And more importantly in practical terms, U.K. equities look a relative bargain compared to cash that yields virtually nothing and bonds that are yielding less than 1 percent," Illsley pointed out, adding that the average dividend yield is about 4 percent.