NEWSLETTER
Image Source: Getty Images
Since the 2007-09 world financial crisis ended in March 2009, the US stock market has enjoyed an almost unstoppable career. Meanwhile, as I have said repeatedly, the United Kingdom Ftse 100 The index seems too cheap and deserves its day in the sun. And guess what happened in recent days?
Skyroketing S&P 500
On March 6, 2009, the S&P 500 The index reached 666 points: the biblical “beast number”. I remember this milestone clearly, since investors worldwide were in absolute agony. After all, the index had reached its maximum point at 1,565,15 on October 9, 2007, before collapsing 57.4%, its greatest deployment since World War II.
At that time, I was delighted with the possibility of buying shares at demolition prices. My family accumulated our cash in US actions and the United Kingdom that arose, which caused returns that change life in the next 16 years. Currently, the main index of the US market is 5,534.54 points, an amazing 631% since its minimum of 2009. Wow.
However, since the beginning of February, I have repeatedly warned that US actions had risen too far from the presidential elections of the United States on November 5. It turns out that he was right, such as S&P 500 and heavy technology Nasdaq compound Since then, the indices have been lost from all their profits after the election.
Trump Bump until Trump's fall
The S&P 500 is now 10% below its maximum of February 19, 6,147.43, leaving it no higher than what closed on July 3, 2024. Meanwhile, the Nasdaq compound is 17,351.59 points, since it has fell 14.1% since its record of December 16, 2024.
Now, for some surprising news: for the first time in years, the FTSE 100 is defeating these both American counterparts. More than a year, Footsie has increased by 9.8%, versus 7.3% for both S&P 500 and for the Nasdaq compound.
In addition, the cake icing for the shareholders of the United Kingdom is that the dividend yield of the FTSE 100 is 3.5% per year. Annual cash yields for compound S&P 500 and NASDAQ are 1.5% and 0.8%, respectively.
Possibly, other investors may be adopting my position that the actions of the United Kingdom are undervalued, both in historical and geographical terms. Finally, a triumph for value investment!
A cheap ftse 100 sharing
As an investor of value and income of the old school, I am a great animator for cheap actions of FTSE 100. For example, take Legal and General Group (LSE: LGEN), whose objective is to return around two fifths of their market value to shareholders in the next three years.
Since 1836, Legal & General has grown up to becoming a leading asset manager in the United Kingdom. Its three key divisions (asset management, institutional retirement and retail, all had a decant 2024. Therefore, the group increased its dividend by 5% to 21.36Pa of participation. It also intends to buy other £ 500 million of its shares, in addition to an earlier repurchase per value of £ 1 billion.
That said, the management of around £ 1.1trn of financial assets leaves legal and general very exposed to market movements. When prices prices and bonds dive, their profits can be affected, as happened in the 2020 that returns Covid 2020. Even so, their solid rock balance allows the group's actions to offer a dividend yield of 8.9% per year. This is offered among the highest actions in London.
More than a year, the shares have dropped 1.8%, but for five years, they have increased 24.8%. Barely exciting numbers, but we intend to hold on to this high performance stock for years!
(Tagstotranslate) category. Dividend-Shares (T) category. Investiging
