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It’s been a brutal week for international buyers, particularly these with heavy publicity to US equities. The S&P 500 index is down 8.2% in per week and 13.2% in a month, whereas the Nasdaq Composite has misplaced 8.6% in a single week and 16% over a month. In the meantime, the UK’s FTSE 100 index has been a comparatively secure haven, dropping 7% in per week, however solely 8% over the previous month.
These latest falls within the American inventory market have been no shock to me. On 20 February, at some point after the S&P 500 hit a contemporary report excessive, I wrote that “US shares look overpriced” — repeating a perception I’ve expressed repeatedly in 2025.
Having witnessed the stock-market crashes of 1987, 2000-03, 2007-09, and spring 2020, I’m not afraid of market meltdowns. I see these corrections as alternatives to purchase into nice corporations at decrease costs. That stated, I see much more worth within the FTSE 100 than in its American counterpart.
Additionally, it’s price noting that the FTSE 100 is definitely up 1.8% over 12 months. Including in money dividends of three.5% takes the Footsie‘s complete one-year return to round 5.3%. In distinction, the S&P 500 is down 2.5% over 12 months, with its dividend yield of 1.4% lowering this loss to 1.1%. For the Nasdaq Composite, these numbers are -4.1%, +0.9%, and -3.2%.
In different phrases, the FTSE 100 has proven itself to be pretty resilient within the face of the newest US market storms. Even so, scores of Footsie shares took a beating this week.
FTSE fallers
Right here’s a number of fashionable and broadly held FTSE 100 shares that dived no less than 10% this week:
| Firm | One-week loss |
| Shell | -11.3% |
| Lloyds Banking Group | -11.4% |
| HSBC Holdings | -14.2% |
| Rolls-Royce Holdings | -14.6% |
| Worldwide Consolidated Airways Group | -14.8% |
| Barclays | -14.8% |
| BP | -14.9% |
Two of those FTSE fallers are main vitality corporations, hit by falling oil costs and fears of slowing international demand. Three are large banks, whose earnings may shrink if the UK financial system contracts. And two are gamers in international aviation, which might endure in any extended recession.
Worth play or restoration inventory?
Amid this newest bout of market nervousness, I believe I’ve noticed one FTSE 100 potential restoration/worth play. Shares in miner and commodity dealer Glencore (LSE: GLEN) plunged by 19% this week, putting it at 99/100 amongst Footsie shares.
Having hit a one-year excessive of 506.72p on 20 Might 2024, Glencore inventory hit a 52-week low of 230.55p on Friday, 4 April. The shares then closed at 236.9p, valuing this group at £29.1bn. This leaves the share worth down a whopping 48.9% over one 12 months. Yikes.
For the report, my spouse and I purchased Glencore inventory in August 2023 for 435.1p a share, so we’re nursing a paper lack of 45.6%. However this has been partly offset by the beneficiant dividends we’ve acquired so far.
Talking of dividends, Glencore’s money yield has jumped to three.8% after this worth plunge. Historical past exhibits me that mining revenues are extremely cyclical and unstable, pushed by commodity booms and busts. Additionally, miners typically minimize their dividends. Nonetheless, this inventory seems to be so under-priced to me now that I’ve no intention of promoting our inventory. In reality, we might purchase extra of this FTSE 100 stalwart!
