As I write, London Stock Exchange trading is about to close for November. And what a memorable month it’s been, as cheap shares soared in response to good news after good news. First, Joe Biden defeated Donald Trump to win the US presidential election, giving US stocks and UK shares an early bounce. Then news of effective Covid-19 vaccines from Pfizer/BioNTech, Moderna, and AstraZeneca/Oxford sent share prices surging.
These positive developments set November up to be a record month for UK shares. As I write, the FTSE 100 has leapt by 720 points (12.9%) in November, its best monthly performance since its inception in 1984. Likewise, US stocks have staged a big comeback, with the S&P 500 up 335 points (10.2%) since Halloween. However, though it’s not been a great year for the Footsie, I see deep value hidden in the FTSE’s 100 cheap shares.