Confidence in the UK stock market could be on a comeback.
Each month we ask our clients how they’re feeling about global stock markets. And recent results are suggesting an increasingly positive feeling about the UK stock market*.
This article isn’t personal advice. If you’re not sure what’s best for you, ask financial for advice. Investments and any income from them can fall as well as rise in value, so you could get back less than you invest. Past performance is not a guide to the future.
Investing in Britain back on the map?
May’s UK confidence score fell slightly compared to April’s (from 101 to 95).
Chart showing investor confidence levels since January 2022
April’s high aside, 95 is the highest level of confidence we’ve seen in our survey since January 2022.
Chart showing investor confidence levels since November 2017
It was also 94 in February 2024, and so far, this year we’ve seen scores in the 90s every month. And with the FTSE 100 reaching record highs over the last few months, it’s a similar story in the wider stock market.
FTSE 100 5 year performance
April 2019 to April 2020 | April 2020 to April 2021 | April 2021 to April 2022 | April 2022 to April 2023 | April 2023 to April 2024 | |
|---|---|---|---|---|---|
FTSE 100 TR | -17.14% | 22.15% | 12.35% | 8.17% | 7.66% |
Time to get investing in the UK?
We think increased confidence in the UK stock market could be well-founded. So, now might be the time to consider investing.
The UK’s home to some world-class companies, providing goods and services around the world.
It’s a leading market for income with investors expecting to take home nearly £90bn in dividends this year alone. Dividends are variable and not guaranteed.
We think the combination of attractive and growing dividends, significant share buybacks, and the discount the UK market continues to trade on makes it an attractive time to invest.
It’s important to invest across different countries, as well as industries and companies, to achieve a diversified portfolio.
But there could be growth opportunities for investors who want some exposure to the UK stock market.
Whether you’re looking to invest in funds, shares or ETFs, discover the UK investment ideas our experts believe have the most potential.
*HL Investor confidence survey 2024, 599 participants.