Most of the attention in the past few months has been on the Federal Reserve’s potential pivot and what it might mean for equities and the US dollar. Sure enough, the Fed is the leading central bank in the world.
But investors in other parts of the world also look at the Fed. Also, they look at other markets with potential.
One is continental Europe. Stocks there are on a tear higher, fueled by lower interest rates than in the US.
Another is the United Kingdom. Since Brexit, investors have been reluctant to invest in the UK, but things have changed. That is especially true if one looks at the FTSE 100 index, which tracks the largest 100 companies in the UK by market capitalization.
Before looking at the technical picture for the FTSE 100 index, it is worth mentioning that the UK is as attractive as the US when it comes to stocks that might rally over 30x. Also called 30 baggers, these are stocks that appreciated in value 30x or more in the last 30 years and have a minimum market capitalization of GBP150 million.
Therefore, opportunities exist. So, is it time to buy UK stocks now that the FTSE 100 index trades at a new all-time high?
FTSE 100 trades at a new all-time high as the bullish momentum continues
2023 has started on a positive note for investors in the UK stock market. FTSE 100 broke above the previous high and now trades at historical levels.
The rally from the COVID-19 lows is nothing short of impressive. However, if one thinks that the US stocks have made multiple all-time highs following the pandemic, then it appears that the FTSE 100 index is lagging.
However, the index consolidated in a bullish pattern in 2022, one that broke higher recently. Given its nature, it suggests further upside, especially since the index broke above the previous all-time high.
All in all, the sentiment and momentum remain positive for UK stocks. While above 7,500, the market should still rally. On the flip side, a daily or weekly close below 7,500 would invalidate the bullish scenario.
The post Should you buy UK stocks now that FTSE 100 trades at a new all-time high? appeared first on Invezz.