Stock Market

During the decade that ended at the start of 2020, the FTSE 100 index grew by 41.5%. During the same period, the NASDAQ 100 was up 372%. The US index was significantly buoyed by the rise of the ‘FAANG’ technology stocks – Facebook, Amazon, Apple, Netflix and Alphabet – as technology became omnipresent in everyday life.

Such are the high earnings multiple and exponential growth of the FAANGs that they have caused a distortion in the US markets.  In the US, the S&P index is trading at x20 earnings and yielding 1.5% according to Bloomberg. This compares with the UK’s FTSE 100 at x12.8 earnings and a yield of 3.2%.  The emergence of these stocks is indicative of the huge new opportunities within the world’s stock market’s as disruptive technologies create opportunities for investors to grow their investment at unprecedented speed.

Contrarian opportunities are also becoming more pronounced as changes in relative values and sentiment causes investors to rotate between value and growth stocks more quickly.  Exxon was number one in the S&P index in 2013 and is 28th today. IBM was number one in 1985 and is 67th today. GE was number one in 2000 but is 73rd today by market value. The velocity of change is accelerating, and the challenge is to create an optimal portfolio.

2 inflation-busting stocks to stop returns going up in smoke

This week the Chief Economist at the Bank of England suggested that UK inflation could be heading toward 4% this year. That is bad news for savers, who – with an annual…

As life returns to normal, Trainline shares look cheap

June 2021 marked the two-year anniversary of the IPO of Trainline (LSE:TRN), which listed in London with a £1.7 billion market cap in 2019.  Early investors have had quite a journey. 

I’m struggling to get excited about Trustpilot shares

This week James Anderson, widely regarded as one of the UK’s top fund managers thanks to his early bets on Facebook, Amazon and Tesla, claimed that the FTSE 100 looks like an index from the 19th century.  Anderson points to a scarcity of fast-growth technology companies on the London market and even went as far as to say there is a “sickness” in the UK market.

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2 inflation-busting stocks to stop returns going up in smoke

This week the Chief Economist at the Bank of England suggested that UK inflation could be heading toward 4% this year. That is bad news for savers, who – with an annual average interest rate…

As life returns to normal, Trainline shares look cheap

June 2021 marked the two-year anniversary of the IPO of Trainline (LSE:TRN), which listed in London with a £1.7 billion market cap in 2019.  Early investors have had quite a journey. 

I’m struggling to get excited about Trustpilot shares

This week James Anderson, widely regarded as one of the UK’s top fund managers thanks to his early bets on Facebook, Amazon and Tesla, claimed that the FTSE 100 looks like an index from the…

Why the Abrdn rebrand is a poorly timed distraction

You have to feel a little sorry for Standard Life Aberdeen (LSE: SLA), which this week announced that it was rebranding by removing all of the vowels from its name to become ‘Abrdn’. The…

2 contrarian investment plays

Buy the dip’ is sage advice that many individual investors heeded during the pandemic-induced lows of 2020.

UK-US market disparity undervalues Blue Prism Group

During the decade that ended at the start of 2020, the FTSE 100 index grew by 41.5%. During the same period, the NASDAQ 100 was up 372%
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