The has been soaring. Year to date the UK-leading index is up 6.5%.
Over the last year, it has climbed a healthy 8.6%. As a result, on 17 June it was revealed that the UK had reclaimed its position as Europe’s largest stock market, overtaking France following political volatility there.
UK stocks have struggled since the Brexit vote. However, it seems they’re now coming back into fashion. But that begs one question: are there still bargains in the UK? With some share prices skyrocketing, investors may feel they’ve missed out.
Still bargains But I’d argue not to worry. In fact, I think the Footsie is still full to the brim with undervalued shares. The FTSE 100’s historical average is between 14 and 15.
Today, it trades on an average P/E of 11. That said, investing in the UK doesn’t come without risk. Inflation fell to the government’s 2% target for May, but it remains a threat.
We’ve got other issues as well, such as interest rate cuts. There’s further uncertainty with the upcoming election. But I see plenty of cheap shares with long-term potential despite share prices rising.
And given I focus on , I won’t let short-term challenges deter me. An example A great example of this is ( ). If I didn’t own the shares today, I’d strongly consider buying some.
As the chart below shows, despite its P/E rising in recent times, the stock still looks dirt cheap with it sitting at 7.6 today. That’s way below the Footsie average.
A key valuation metric for banks is.