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It has been a robust 12 months to date for a lot of UK shares.
The FTSE 100 has had a storming 2025 to date, for instance.
It’s up 18% for the reason that begin of the 12 months and has repeatedly set new all-time highs alongside the best way. The FTSE 250 is up by a extra modest 7%, whereas the FTSE All-Share has moved up 16%.
May issues preserve going properly – and maybe proceed that method after subsequent month, as soon as 2025 offers strategy to 2026?
A powerful market amid a combined enterprise surroundings
I feel that there may, probably, be extra robust efficiency forward of us.
In any case, UK shares have executed properly total in 2025 despite the fact that it has been removed from a banner 12 months for the British economic system.
Development has been sluggish, and plenty of companies have complained a few rising tax and regulatory burden consuming into their profitability. Shopper demand has been sluggish and there are many indicators of tightening belts.
But that has not stopped the British inventory market from powering forward.
So I reckon it may preserve doing properly even when the economic system stays sluggish. If there are clearer indicators of development, that might assist assist a good increased inventory market.
Not immune from the worldwide image
Then once more, we may but see the inventory market wrestle between now and the tip of the 12 months. 2026 will not be a great one.
Why? Apart from the British economic system, the worldwide image additionally weighs on the London market.
If there’s weak point in world markets, that might harm investor confidence in Britain and harm UK shares, even when Britain itself is doing high-quality.
We have now already seen this in 2025. Whereas it’s simple to give attention to the Footsie’s total robust efficiency thus far within the 12 months, that has been removed from a clean journey. The shock US tariff announcement in April shook markets on each side of the pond.
The worldwide economic system continues to look fragile. Geopolitical dangers stay elevated. That might weigh negatively on the London market.
Right here’s my method as we head in direction of 2026
Clearly, no person is aware of for positive the place the inventory market would possibly go from right here.
No matter occurs to the broader market, although, some particular person shares could also be costly whereas others are low-cost.
That’s the reason, somewhat than shopping for the market, I’m searching for particular person UK shares so as to add to my portfolio.
One I’ve purchased in latest months is scientific instrument maker Judges Scientific (LSE: JDG).
The worldwide financial weak point and geopolitical dangers I discussed above have harm Judges. Demand in some markets together with China stays subdued.
Some US instructional establishments have seen budgets slashed. I see that as an ongoing danger for Judges’ revenues and earnings.
However the medium-sized UK firm has constructed a worthwhile enterprise focussed on a market the place prospects are prepared to pay premium costs for top-quality merchandise.
Over the long term, there shall be sustained demand for measurement devices. Judges has been cautious to not overpay for acquisitions. Its centralised enterprise providers imply it may well wring efficiencies out of small instrument makers it buys up.
That helps clarify why it has persistently delivered double-digit grown in its annual dividend per share.
I like that enterprise mannequin and see sizeable room for future development on the agency.
