Arguing that the UK stock market is a bargain

Jeremy Warner is arguing that the UK stock market is currently a baragin and that only foreigners realize it. His argument that the Labour party is not bad for the markets seems reasonable enough, but when he notes that “nearly a quarter of the total value of the UK stock market is accounted for by just four companies – BP, GlaxoSmithKline, Shell and Vodafone” I wonder just how safe it is to buy a total market index fund – one scandal in one of the big 4 could have a very big impact.

2 Responses to “Arguing that the UK stock market is a bargain”

  1. Alzahr says:

    James,

    JW is not saying buy the FTSE100 index; he’s pretty much making the same point you are: 4 FTSE100 multinatioanls exposed to global economic factors hide the huge outperformance of the broader, nearly all UK domestic, FTSE250 index.

    So if you want UK exposure, look mid-cap.

  2. James Trotta says:

    At least we all agree…