In a world where stock markets can be unpredictable and volatile, finding stability and value in investments is crucial. Since the financial crisis of 2007-09, the US stock market has seen remarkable growth, but is now showing signs of a slump. On the other hand, the UK’s FTSE 100 index has been undervalued for too long and is finally shining.
- The S&P 500: A rollercoaster ride
- After reaching a low of 666 points in March 2009, the S&P 500 has surged to over 5,000 points, marking a 631% increase.
- Recent warnings of overvaluation and a possible market correction seem to be proving true, as the index has plunged below its post-election highs.
- The FTSE 100: A surprising winner
- In a twist of fate, the FTSE 100 is outperforming its US counterparts, with a 9.8% increase over one year.
- The index also boasts a higher dividend yield of 3.5% compared to the S&P 500 and Nasdaq Composite, signaling a potential shift towards UK shares.
- Legal & General Group: A hidden gem
- Legal & General, a stalwart in UK asset management, has been providing steady returns to investors.
- Despite market risks, the group’s solid financial foundation allows for a generous 8.9% dividend yield, one of the highest in the London market.
- With a long-term strategy and a focus on value and income investing, holding onto high-yielding stocks like Legal & General can offer stability and growth.
As the market landscape evolves and shifts, it is essential to identify opportunities for growth and stability. Investing in undervalued assets like the FTSE 100 and high-yielding stocks such as Legal & General may prove to be a smart long-term strategy. Embracing value and income investing principles can lead to significant returns and financial security in the ever-changing world of investments.
