Close Menu
Finsider

    Subscribe to Updates

    Get the latest creative news from FooBar about art, design and business.

    What's Hot

    Strategies for Escaping Debt Without Compromising Your Retirement

    August 3, 2025

    WisdomTree Q2 Assets Rise on European Flows and Gains

    August 3, 2025

    Boost Team Productivity and Security With Windows 11 Pro, Now $15 for Life

    August 3, 2025
    Facebook X (Twitter) Instagram
    Trending
    • Strategies for Escaping Debt Without Compromising Your Retirement
    • WisdomTree Q2 Assets Rise on European Flows and Gains
    • Boost Team Productivity and Security With Windows 11 Pro, Now $15 for Life
    • The ‘120 Minus You Rule’ of Retirement
    • Tim Cook reportedly tells employees Apple ‘must’ win in AI
    • The Rolls-Royce share price smashed its own record this week. Is it too late to buy?
    • DOGE targets $0.80 but newer tokens are attracting long-term whales
    • The $50 Million Rebate Investors Are Missing Out On
    Facebook X (Twitter) Instagram Pinterest Vimeo
    Finsider
    • Markets & Ecomony
    • Tech & Innovation
    • Money & Wealth
    • Business & Startups
    • Visa & Residency
    Finsider
    Home»Money & Wealth»FTSE 100: next stop 10,000?
    Money & Wealth

    FTSE 100: next stop 10,000?

    FinsiderBy FinsiderJuly 18, 2025No Comments3 Mins Read
    Share Facebook Twitter Pinterest LinkedIn Tumblr Reddit Telegram Email
    UK financial background: share prices and stock graph overlaid on an image of the Union Jack
    Share
    Facebook Twitter LinkedIn Pinterest Email

    UK financial background: share prices and stock graph overlaid on an image of the Union Jack

    Image source: Getty Images

    Strange things have been happening, including the FTSE 100 breaking through 9,000 points to hit an all-time high (before slipping back a little).

    Just look at the price chart for the iShares Core FTSE 100 UCITS ETF (LSE: ISF). It’s a big name, but it’s just an index tracker fund that follows the whole of the Footise. And it’s a good reflection of the London stock market.

    Strangeness?

    Why might a new record be strange? Well, it comes as UK inflation unexpectedly climbed to 3.6% in June. Employment fell for the fifth month in a row, with unemployment rising to 4.7%. And the prospects for the next interest rate cut haven’t exactly brightened.

    Maybe government talk of encouraging investors to move to a Stocks and Shares ISA has something to do with it? That’s a good idea for sure, but I’m cautious over what difference it might make.

    In reality, the market rise is more likely based on one simple fact. The majority of our FTSE 100 companies are global, with very few tied solely to the UK economy.

    Over in the US, both the S&P 500 and Nasdaq 100 have also set new highs. It think it was inevitable we’d follow suit.

    US economy

    But the US economy has been faltering in the wake of President Trump’s tariff onslaught. The latest figures show rising inflation, and analysts are lowering their odds on the next rate cut from the Federal Reserve.

    So why are US markets soaring? It really looks like it’s all being driven by the rise of artificial intelligence (AI). AI chip maker Nvidia has soared to a market cap above $4.2trn — more than the entire FTSE 100. Are global stock markets being driven mostly by AI hype? And is that madness?

    I say set that all aside and just examine valuations. What kind of valuation are we looking at with the iShares Core FTSE 100?

    Price and dividend

    It’s hard to work out an accurate price-to-earnings (P/E) ratio for the iShares tracker. Asking those AI things, I get answers suggesting it’s around 10.5. How they get that when the FTSE 100 P/E is estimated at 17.8, I have no idea. But it tells me one thing — never believe anything an AI chatbot says without confirming it for yourself.

    The index P/E is a bit above its long-term value of around 15, but not outrageously so. And the expected dividend yield of 3.5% is a bit below the trend, which is closer to 4%.

    But you know what? Putting aside the short-term uncertainty, I think the outlook for UK shares over the next decade is improving significantly. And a 9,000-level FTSE makes the iShares Core FTSE 100 look good value for me on these figures. But it does share the risk of the stock market in general, and could lose money in any new downturn.

    When 10,000?

    On that basis, I’m convinced the FTSE 100 is likely to reach 10,000 in the not-too-distant future. I won’t try to predict how long it will take. But I reckon those thinking of opening a Stocks and Shares ISA today could do well to consider starting with iShares Core FTSE 100. Or an investment trust or two. Or individual FTSE 100 shares.

    FTSE stop
    Share. Facebook Twitter Pinterest LinkedIn Tumblr Email
    Previous Article2 growth stocks absolutely smashing the FTSE 100
    Next Article Can the U.S. Break China’s Stranglehold on Rare Minerals?
    Finsider
    • Website

    Related Posts

    Money & Wealth

    Strategies for Escaping Debt Without Compromising Your Retirement

    August 3, 2025
    Money & Wealth

    The ‘120 Minus You Rule’ of Retirement

    August 3, 2025
    Money & Wealth

    The Rolls-Royce share price smashed its own record this week. Is it too late to buy?

    August 2, 2025
    Add A Comment
    Leave A Reply Cancel Reply

    Top Posts

    Strategies for Escaping Debt Without Compromising Your Retirement

    August 3, 2025

    Cursor snaps up enterprise startup Koala in challenge to GitHub Copilot

    July 18, 2025

    What is Mistral AI? Everything to know about the OpenAI competitor

    July 18, 2025
    Stay In Touch
    • Facebook
    • YouTube
    • TikTok
    • WhatsApp
    • Twitter
    • Instagram
    Latest Reviews

    Subscribe to Updates

    Get the latest tech news from FooBar about tech, design and biz.

    Most Popular

    Using Gen AI for Early-Stage Market Research

    July 18, 2025

    Cursor snaps up enterprise startup Koala in challenge to GitHub Copilot

    July 18, 2025

    What is Mistral AI? Everything to know about the OpenAI competitor

    July 18, 2025
    news

    Strategies for Escaping Debt Without Compromising Your Retirement

    August 3, 2025

    WisdomTree Q2 Assets Rise on European Flows and Gains

    August 3, 2025

    Boost Team Productivity and Security With Windows 11 Pro, Now $15 for Life

    August 3, 2025

    Subscribe to Updates

    Get the latest creative news from FooBar about art, design and business.

    © 2020 - 2025 The Finsider . Powered by LINC GLOBAL Inc.
    • Contact us
    • Guest Post Policy
    • Privacy Policy
    • Terms of Service

    Type above and press Enter to search. Press Esc to cancel.