Why is the FTSE 100 soaring – and can its run continue?
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This is Money Podcast
This episode is titled:
Why is the FTSE 100 soaring – and can its run continue?
Notable Quotes
"It turns out you can have too much of a good thing."
"With the magnificent seven and the US stock market absolutely rampaging ahead, concerns over valuation have started to shift attention elsewhere."
"If you had invested £1,000 into Rolls-Royce five years ago, you would now have £13,000."
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Get More InsightsEpisode Summary
In this episode of This is Money Podcast, the hosts discuss the impressive gains of the FTSE 100, nearing an 11,000 mark with an 8.8% increase, the best start to a year since 1998. Factors contributing to this rise include the attractiveness of UK stocks compared to the overvalued US tech sector. They highlight standout stocks in the 'Tasty 20' list, like Rolls-Royce, which has seen a remarkable 1,178% rise in shares over five years, thanks to its recovery post-pandemic and securing contracts in defence and energy sectors.
The discussion shifts to the upcoming changes with Making Tax Digital, which will require nearly three million taxpayers, primarily self-employed individuals, to file their taxes multiple times a year. The complexity of new software requirements raises concerns about potential confusion and chaos among small business owners.
Lastly, the hosts debate the financial implications of switching to electric vehicles versus traditional petrol cars. An analysis shows costs associated with purchasing, servicing, and fuel for both vehicle types, indicating that while EVs can be economical over certain use cases, they often come at a higher upfront cost. The episode concludes with the acknowledgment that electric vehicles might not be the most cost-effective choice for everyone, depending on individual circumstances.
The discussion shifts to the upcoming changes with Making Tax Digital, which will require nearly three million taxpayers, primarily self-employed individuals, to file their taxes multiple times a year. The complexity of new software requirements raises concerns about potential confusion and chaos among small business owners.
Lastly, the hosts debate the financial implications of switching to electric vehicles versus traditional petrol cars. An analysis shows costs associated with purchasing, servicing, and fuel for both vehicle types, indicating that while EVs can be economical over certain use cases, they often come at a higher upfront cost. The episode concludes with the acknowledgment that electric vehicles might not be the most cost-effective choice for everyone, depending on individual circumstances.
Key Takeaways
- The FTSE 100 is experiencing significant growth, driven by undervalued UK stocks amidst a shift in investor interest from overvalued US tech stocks.
- Rolls-Royce's extraordinary stock performance is linked to its recovery and involvement in lucrative contracts in energy and defence.
- Changes in tax reporting with Making Tax Digital may complicate finances for small businesses, resulting in potential increased costs for accounting software.
- Switching to electric vehicles can lead to cost savings, but many factors, including purchase costs and mileage usage, determine if it’s truly economical compared to petrol cars.
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