27th April 2021

Is the FTSE about to roar ?

It is well documented that the FTSE100 index has proven to be a persistent laggard over the past few years when compared to its broad-based index peers. For example, and using the total return index figures, since the start of 2018 to the end of Q1 2021, the FTSE100 has fallen by c. 0.5%. In stark contrast, the Eurostoxx 50 index has gained over 20% with the S&P500 index climbing c. 58%. The Nasdaq 100 index being the front-runner with a staggering doubling in valuation over the same period. So, why has the FTSE1000 been such a persistent laggard? Well, strong headwinds were set in motion on Thursday 23rd June 2016 when the UK voted to leave the European Union. Uncertainty ruled the waves as investors began to shun the UK market with cautionary and defensive overtures.


Continue the note here.