Market expert explains why UK stocks might be your best bet right now
Despite todays Budget uncertainty and global risks UK stocks show strong potential for growth. FTSE 250 companies current low prices combined with improving economic indicators create unique investment chances
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