FTSE 250 outperformance ahead?


FTSE 250 

There are a number of reasons that the FTSE 250 may outperform the FTSE 100. They include the following reasons:

  • The UK vaccine speed. The UK has nearly vaccinated 20% of their population now.

Insert UK vaccination speed

  • Goldman Sachs forecast 19% GDP rise for Q2
  • The UK service sector is poised for a very good recovery since the potential for the end of lockdowns will mean the unloved sector can start growing again.
  • The high savings rate in the UK, due to fiscal support keeping incomes during the lockdown, mean that strong demand is expected.
  • The FTSE250 is a high concentration of financials and consumer services and should outperform the FTSE100
  • Post Brexit: The ‘no-deal’ risk is now behind the UK
  • There are good seasonals for the FTSE 250.

FTSE 250 

So, this means the FTSE 250 could be a decent buy between now and the start of June. An ETF could be a good way to expose yourself to this trade.



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By Jonathan Prop

Jonathan Prop is an independent financial advisor. He has been working in finance for the last 20 years. After retiring early in his 40s, Jonathan decided to help others get to grip with financial markets, particularly his area of expertise - forex!

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