An American investment banking powerhouse has advised its clients to invest in London-listed stocks, citing what it described as “over a decade of persistent underperformance.”
Goldman Sachs recommended both the FTSE 100 and the FTSE 250, noting that these indices have performed well compared to their global counterparts this year. According to a research note, the FTSE 100 offers a 6% yield from dividends and share buybacks, and provides “good diversification” from the tech-heavy S&P 500.
Goldman Sachs analysts highlighted that every sector within the FTSE 100 is trading at a discount. They observed:
“Domestic investors have shown limited interest in UK equities, which has depressed valuations and led management to consider foreign listings, privatizations, or aggressive share buybacks. While these strategies may persist and support valuations, policymakers are increasingly recognizing that this is detrimental to the…
