Bond yields are rising, US tariffs are coming, and UK companies are going through increased prices within the type of taxes and Nationwide Insurance coverage. However both no person’s advised the FTSE 100, or it doesn’t care. 

The UK’s largest index has simply hit report highs, which is spectacular contemplating what’s occurred to the JD Sports activities share price within the final three months. So ought to buyers plough on regardless or look elsewhere?

Preserve shopping for?

Totally different buyers have totally different methods and that’s a superb factor – as with garments, there’s no fashion that fits everybody. However I believe buyers proper now ought to think about sticking to no matter their plan is.

For some, that can contain investing a hard and fast quantity frequently right into a diversified index, such because the FTSE 100. It’s as thrilling as magnolia paint, but it surely does include some huge benefits. 

One is that it takes away the problem of figuring out when shares are low cost and once they’re not. Shopping for frequently will ultimately generate a superb consequence so long as shares do effectively over the long run. 

The opposite is that it removes the necessity to work out which shares have the brightest prospects. Investing throughout an index means buyers will profit whether or not BP outperforms BT or the opposite manner round.

It is a good plan, however the level is buyers are supposed to maintain shopping for no matter whether or not costs are low or excessive. So the FTSE 100 being close to its highs isn’t a motive for anybody doing this to keep away from it.

Inventory selecting

Not all buyers do that – some are so horrified on the concept of proudly owning issues they don’t need or shopping for shares at excessive costs that they like to give attention to particular person corporations. I’m one in all these buyers.

There are undoubtedly some bits of the FTSE 100 I’m staying away from proper now, however this isn’t the case throughout the board. Earlier this week, shares in Rentokil Preliminary (LSE:RTO), which I already maintain, as soon as once more hit my goal purchase price.

The corporate has had some difficulties recently. It acquired Terminix – an enormous US competitor – in 2022 and seeing it attempt to combine the enterprise has been loads like watching a python making an attempt to eat an antelope.

One distinction between the 2 is that no person’s making an attempt to organise a class-action lawsuit in opposition to a snake. There’s one in opposition to Rentokil although, and that’s why the share price has been falling this week. 

That’s one thing buyers ought to think about as a real danger. It’s laborious to know precisely what it’d quantity to, but it surely’s effectively value keeping track of for anybody within the inventory.

My cash nonetheless’s (fairly actually) on the FTSE 100 agency. I believe the pest management trade’s prone to develop steadily over time and a powerful place on this trade may effectively grow to be very priceless.

Alternatives

The FTSE 100’s displaying spectacular resilience in a tough financial surroundings. However whether or not it’s common investing or in search of particular alternatives, I don’t assume buyers ought to be staying away.

For my very own portfolio, I’ve bought a watch on Rentokil, plus a few different shares. I’m paying shut consideration to what the bond market’s telling me, however shares nonetheless look engaging to me proper now. I could purchase extra.