Since the beginning of the year, S & P 500 It is 2 % 2 %. In contrast to that, we have FTSE 100 indicators for leading stocks It increased by 7 % during the same period.

This may be surprising, given the number of times we hear about the performance of the American market strongly, while the London exchange is neglected. In fact, this month this month Fintech is included in London wise She announced its plans to convert the initial stock market list to the other side of the blessing.

Therefore, should I continue to search for the FTSE 100 cheap share for purchase? Or can it now be the moment to convert my concentration to the S&P 500 shares?

The UK market still looks attractive

There has always been a gap in the evaluation between New York and London.

Even after the height seen in FTSE 100 in recent months, the average price ratio to profits is about 13 years. Compare this to the equivalent form for the S&P 500-29-and it seems that the London market has been greatly estimated in comparison.

In fact, things may be more accurate. For one reason, indexes contain different shares. S&P 500 contains fast -growing technology giants like NafidiaWhich may attract a firm assessment of FTSE 100 components with weaker growth prospects.

Another thing for the investor to consider is whether the evaluation gap may be justified and sustainable. London has liquidity less than New York, and its companies have long suffered from weaker assessments than their peers in the United States. As an investor, I love it completely: it helps me capture deals. But it is useful to remember this, just because something seems valuable, it does not necessarily mean that it will be appreciated soon (or at all).

Adhere to what I know

Warren Buffett always emphasizes the importance of adhering to investors with what they understand. Putting money in something you do not understand is not investment, but just speculation.

As investors, we tend to get some home grass feature when it comes to corporate evaluation. I can easily start to a Tesco or J Sainsbury To learn about the work, from the S&P 500 equivalent Wal Mart or Public dollar.

This does not mean that I never invest in American companies. After all, the information is widely available at the present time. But I think it might be easier for an UK investor to define opportunities in their local market more than the external arena, without making more work.

UK share is one I am excited

example JD SPORTS (LSE: JD). One of its main suppliers Nike. The S&P shoe maker has recently faced difficult time, as the price of his share has decreased by 36 % over a period of five years.

JD SPORTS felt the effect of ripples: its own share price decreased by 40 % in the same period.

The constant demand for Nike shoes is a risk to revenue and profits for JD SPORTS, in my view.

However, trading for earnings eight times, JD sports shares look less than their value. Although it is a company listed in London, it has wide work in the United States and many other global markets. If the sales momentum remains strong, I think the share price may grow.

The business model is very profitable. It takes advantage of the savings of size, while its strong brand and exclusive products help distinguish it from competitors.