Over the past few years, investors seem to have turned their backs on UK shares. In all fairness, I can understand why. From Brexit to the pandemic and, more recently, double-figure inflation, the UK stock market has been under a lot of pressure.
Many share prices haven’t delivered great returns and UK shares have been overlooked as such. But this seems to be changing. and shares have got off to a flying start in 2024.
It seems UK stocks could be coming back into fashion. But even so, they still look dirt cheap. I think now could be a chance to capitalise on undervalued prices before we see them soar in the years to come.
After a rather monotone 2023, Footsie shares have upped the pace in 2024. Year to date, the FTSE 100 has risen 6.1%.
At the same stage last year, it was down 0.9%. The FTSE 250 has climbed an impressive 6.
1%. Similarly, at this point last year, it had fallen by over 3.6%.
But even with a solid start, plenty of shares still look dirt cheap. Today, Footsie shares trade on an average of 11. That’s way below their long-term historical average of around 15.
Not straightforward That’s not to say it’ll be a . The economy’s still flagging, and risks do remain in the near term. Inflation figures for April came in higher than expected.
While some were speculating about interest rate cuts as early as next month, that now seems incredibly unlikely. But I’m not going to let bouts of short-term volatility distract me from my . Potential setbacks over the upcom.
