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I reckon those looking to boost the value of their Self-Invested Personal Pensions (SIPPs) should take a closer look at British shares. I think there’s plenty of evidence around to suggest that, in general, they currently offer excellent value for money.
One measure that’s sometimes used to assess the relative valuations of stock markets is the (Warren) Buffett Indicator. Usually expressed as a percentage, it compares the total market-cap of a stock market with a country’s Gross Domestic Product (GDP). It’s a bit like a country-wide price-to-earnings (P/E) ratio.
As an alternative, some add the total value of assets held by a nation’s central bank to its GDP. This reflects that fact that when they buy equities, it inflates the value of the stock market but doesn’t increase economic activity.
Using this modified measure, the UK stock market is currently (25 April) at…
