Stuart Kirk reflects on his UK equity overweight position after a turbulent week at sea. Despite a broken fridge and sleepless nights, his portfolio barely moved. The FTSE 100 has surged since he questioned its valuation post-Iran war, with his exposure back above 30%. He's grateful but surprised, noting the rally was partly driven by investors fleeing US tech for cheaper shares.

Kirk discusses the rotational buying from US to European equities, citing LSEG Lipper data showing $10bn outflows from US funds and similar inflows into European funds. He warns that such money is speculative and will leave on the next earnings beat. The Stoxx 600 hit another high, with earnings up 15% in Q2, but he remains skeptical about Europe's absolute gains.

He argues European stocks trade above long-run averages and the valuation discount to the S&P 500 has narrowed to 23%, the smallest since 2022. He believes European valuations should be half of US levels, not three-quarters. Despite the recent strength, he sees the UK as even less attractive now, as rotational buying merely pushed multiples higher.