So, shares aren’t as well valued as their counterparts. They’re too cheap, people say, always undervalued. But you know what? I reckon that’s great news for UK private investors.
Buying cheaper domestic shares than our US counterparts, and enjoying years of better dividend yields? Doesn’t sound so bad. Bullish investors But we’ve been seeing improving sentiment towards the London stock market in 2024. And I wonder, might we be only be a couple of interest rate cuts away from a new bull run for UK shares? In the new year, investing firm has seen an uptick in demand from private investors.
And I want to take a look at two very different stocks from among their five most popular right now. Cyclical bargain Insurer ( ) has been something of a start/stop 2024 favourite. On 12 June, the board told us it “ .
” We should see dividend growth of 5% this year, then 2% per year to 2027. The very next day, the board commenced the first under the new plan, of up to £200m. Sound good? Well, the Legal & General share price slumped, down 10% since the start of June.
What confidence? This tells me one thing, at least. That confidence in UK shares is still shaky. This is a FTSE 100 stock with a forward (P/E) ratio under 10, and a forecast of 9%.
And people turn up their noses at it. To some extent, it look like UK investors are turning to high-tech and growth as the outlook brightens. We have, after all, seen a huge surge in the share price in the past year.
And is up in the mix o.
