The market faces short-term shake-ups due to todays Budget and next months US election (which could re-shape global trade patterns). Meanwhile ongoing issues in Ukraine and Middle-East dont help market confidence
Smart investors should see market fears as a buy-in chance: waiting for perfect conditions means missing good deals. History shows that unexpected events — like the covid-19 outbreak — can hit markets anytime‚ so theres no risk-free moment to invest
The FTSE 250s performance needs a closer look; its been kind-of sleeping for about 5 years with just 1% yearly returns. However UK economy shows good signs: positive growth in early-24 and better inflation numbers make these mid-sized companies look cheap
- FTSE 100 keeps showing solid long-term gains
- FTSE 250 offers special value due to UK-focus
- Both indexes have high single-digit returns since they started
The UK market seems ready for a come-back — interest rates will probably go down soon which helps companies bottom-lines. Many Robert Stephens points out that UK-listed firms have strong cash positions; this means short-term price swings dont equal real money loss
Looking at past decades: even with wars economic crashes and other big problems well-picked stocks beat other investments. Market prices go up-and-down but good companies keep making money: thats what counts in the end