UK shares have kick-started the year in awesome fashion. The has rallied 6.9%.
The has also been getting in on the action, climbing 6%. But plenty of UK-listed companies still look like bargains, in my eyes. The average Footsie is just 11.
That’s far off from its historical average of between 14 and 15. It’s been a tough few years for retail traders. The pandemic was a once-in-a-lifetime occurrence that sent stock markets across the globe tumbling.
The record inflation and interest rate hikes that have followed haven’t been much more fun. But it seems we may be finally coming out the other side. I’m aware the issues above could still hinder the Footsie’s performance this year.
While it’s widely rumoured the first rate cut will occur in August, should the Bank of England decide to delay this, that would no doubt see markets react negatively. Of course, I can’t forget there’s the upcoming election to throw into the current cocktail of uncertainty too. But while the UK will face challenges, looking at the valuation of many businesses, I’m hopeful in the years to come we could see share price continue to tick upwards.
Plenty of UK shares look severely undervalued right now. For investors who pick stocks for the long run, now could be a great opportunity to dive in and snap up some bargains. One example of a stock I’m hoping to pick up in the near future is ( ).
It has put up a brilliant performance this year. So far, it’s jumped 14.6%.
Even so, trading with .
