The UK is poised for a comeback in 2026

The UK stock market has long been shunned by retail investors, as the AI boom, inflation woes and gloomy economic conditions spark the search for greater returns in overseas markets, particularly the US.

While this narrative has held back many investors from tapping into the UK, the London index has bounced back in 2025, with those who failed to notice the market’s potential missing out on 20 per cent gains from equities.

The FTSE 100 is up 17.6 per cent this year to date, reaching 9,718 pence, as the government continues to encourage Brits to invest in UK stocks while overseas investors are eyeing the market for its stable returns from sectors such as banking.

In comparison, the S&P 500 is up just 16.7 per cent, despite the rush for AI stocks,

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