Will the UK stock market be the one to back in 2025? Shares are still going cheap, say experts - we get their picks
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The UK remains cheap but shows signs of becoming liked - if still not loved - by investors as we head into 2025. After 41 months in a row when they deserted UK markets with net outflows from stocks, we finally saw a net inflow in November. That has perked up some interest, even excitement, among pundits.
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The Labour government won a decisive election victory last summer and the prospect of political stability for the next five years, and a growth agenda that includes a huge housebuilding programme, may also bode better for the economy. That needs to be balanced against Sir Keir Starmer and Rachel Reeves' shaky economic start, with a dose of pessimism and unpopular Budget dished out and getting blamed for a flatlining economy.
![[City analyst consensus forecasts for industry sector profits and dividends in 2025. Compiled by AJ Bell]](https://i.dailymail.co.uk/1s/2024/12/19/14/93317935-0-City_analyst_consensus_forecasts_for_industry_sector_profits_and-a-7_1734619828697.jpg)
Below, finance experts look at how the FTSE indices have done versus global competitors in 2024 and what lies ahead for UK markets, come up with a hopeful prediction for the pound. And we asked our experts to pick some UK stocks worth watching next year.
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Chancellor Rachel Reeves: Does the prospect of political stability for the next five years and a growth agenda bode better for the economy. The FTSE All-Share’s advance in 2024 matches last year's progress but pales compared with the major gains achieved by the headline US indices, says AJ Bell investment director Russ Mould - see the table below.
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