FTSE 100 Breakthrough. Why Now?
1 August 2025
To all Financial Friends
The FTSE 100 Index started out in life on 31st January 1984 at 1000 points. Yesterday, 31st July, the Index broke through to an intraday level of 9190 points, its highest ever level. This on the day before Donald Trumps 'reciprocal' tariffs come into effect across the globe and the UK economy is struggling. The Index reflects the capital value of Britain’s largest 100 companies so what is going on?
Amongst the reasons for the breakthrough are the performance of specific sectors of the market rather than the market as a whole. It is precisely the need to look 2 steps ahead of the market that our commentaries have highlighted the need to consider being specific about assets held. So many advised portfolios in ISAs and Pension holdings often carry 14 or so funds spread over the globe and across every asset. Such a wide diversification of holdings is likely to follow the market up and down with no cutting edge for growth or protection in volatile times?
One of our students has taken this message to heart in selecting their choice of holdings. Records show that in just three months to 14th July specific asset holdings results have been positive. In just that 3 month period their choice of 2 Global Infrastructure funds have gained by +11.2% and +6.4% respectively. Holding gold and silver gave +15.1%. A specialist equity fund put on +11.1% whilst even a very safety first money market fund made +2.5%
Be very sure that investments, as you know well, can fall as well as rise. This is why thoughtful diversification of your holdings with some defensive elements leads to prudent yet profitable returns.
A quick look at this students funds today show that since inception the chosen gold and silver fund has gained +29.63%, Infrastructure funds +18.42% and 12.27% respectively. Could it be that selecting specific asset holdings can somewhat protect funds in a market fall and give a cutting edge in rising markets? Shall we discuss your thinking on a Zoom call?
I will be writing soon about whether traditional portfolios, based on the belief that Government Bonds will still act as a kind of insurance policy against a market fall, is a safe assumption for the future. Just to pay our 'household bills' as a nation needed us to borrow £16.3 billion in June, just to cover operational costs, with total borrowing for the month of June at £20.7 billion. Figures from the ONS (Office for National Statistics).
