The FTSE All Share index has returned 13 percent year-to-date, despite global economic uncertainty and Covid lockdown concerns. Now experts say there could be more action to come next year.
Despite this year’s success, UK shares remain relatively good value compared to many countries.
That explains why US private equity companies are falling over themselves to snap up British companies at bargain prices.
Rising inflation is a worry as this could cut consumer demand and business profitability, but it’s not all bad news.
The UK stock market remains cheap and unloved despite this year’s success, said Alex Wright, portfolio manager of investment fund Fidelity Special Situations.
FTSE shares are good value and the country’s economic future looks promising. “The removal of Brexit uncertainty and the country’s swift vaccination rollout have both contributed to the improved outlook.”
Wright said the “final shudders” of the pandemic should work their way through the global economy in 2022. “The risk is the arrival of a yet more dangerous variant.”
Stock markets will continue…
