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The FTSE 100 index has retreated from its highs around 8,300. One reason for that is the government’s narrative that it will need to take tough decisions to rebalance public finances and boost the economy over the long run.
This is in stark contrast to the US where Donald Trump’s re-election on a tax-cutting ticket has seen American stocks surge to new highs. But despite the supportive growth trends that could come from lower taxes, I think US stocks have stretched valuations.
Finding cheap gems on the FTSE 100
The FTSE 100 currently offers good value for investors, with its price-to-earnings (P/E) ratio and dividend yield appearing attractive compared to other major indexes, especially the US. Many blue-chip companies with global operations — not UK-focused operations — are trading at discounted valuations, potentially presenting opportunities for value…
