- Value investors are paying attention
- Commodity stocks have bolstered growth
The FTSE 100 doesn’t have a great reputation internationally. While America boasts stellar growth and futuristic ambition, the UK’s blue chip index is more associated with oil, cardboard, cigarettes and cleaning products. These stocks may be very cash generative, but they look fusty compared with the children of Silicon Valley – at least according to some investors.
These investors have a point. The S&P 500 has risen by almost 50 per cent over the past five years. The FTSE 100 has grown by 1 per cent, albeit the gap closes slightly once dividends are included.