Is The FTSE 100 Expensive After Its Recent Gains?

The FTSE 100 rose 20% in 2025 and is up more than 35% over the past two years, highlighting a strong but cyclical market move. The article argues that while short-term earnings and prices can be volatile, cyclically adjusted earnings and dividends tend to grow more steadily over time. Overall, this is a broad market observation rather than a company-specific catalyst.

Analysis

The FTSE 100 rose 20% in 2025 and is up more than 35% over the past two years, highlighting a strong but cyclical market move. The article argues that while short-term earnings and prices can be volatile, cyclically adjusted earnings and dividends tend to grow more steadily over time. Overall, this is a broad market observation rather than a company-specific catalyst.