A strong second half for global stockmarkets?
Global stocks have enjoyed their second-strongest start to a year since 1998 – could the second half of the year be even better?

Global stocks have enjoyed their second-strongest start to a year since 1998, says Cormac Mullen on Bloomberg. The MSCI All Countries World index rose by 11% during the first six months of the year, second only to a 15% gain in the first half of 2019. “The global stock benchmark closed at a record on 28 June, and has risen almost 90% since its pandemic low in March 2020.”
America’s benchmark S&P 500 index enjoyed yet another strong half, gaining 14.4%, while the FTSE 100 rose by 10.9%. The rally in value stocks was not enough for the FTSE to outperform the US index, but the FTSE Small Cap index, which tracks smaller listed companies, has been a happier hunting ground, as Laith Khalaf of AJ Bell points out.
The index has “repeatedly set new record highs” and has gained 19.4% so far this year. Smaller businesses are more exposed to the re-opening domestic economy than the big blue-chips.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Asian stocks had a more muted first half. Japan’s Topix gained 8.3% but a weaker yen eroded those returns for British investors. China’s CSI 300 index was virtually flat.
There were some Asian bright spots, says Eustance Huang on CNBC. Vietnam’s VN index surged by an impressive 27.6% in the first half. Taiwan’s Taiex (up 20.5%), South Korea’s Kospi (14.7%) and India’s Nifty 50 (12.4%) also turned in solid performances.
Markets have been unusually placid during the last six months, says Dominic Coyle in The Irish Times. So far, the S&P 500’s “biggest peak-to-trough pullback in 2021 was a mere 4.2%”. That might not last. Still, data from LPL Research shows that a “strong first half of the year is usually followed by a strong second half... What goes up” will not necessarily “come down”.
Sign up for MoneyWeek's newsletters
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.
Alex is an investment writer who has been contributing to MoneyWeek since 2015. He has been the magazine’s markets editor since 2019.
Alex has a passion for demystifying the often arcane world of finance for a general readership. While financial media tends to focus compulsively on the latest trend, the best opportunities can lie forgotten elsewhere.
He is especially interested in European equities – where his fluent French helps him to cover the continent’s largest bourse – and emerging markets, where his experience living in Beijing, and conversational Chinese, prove useful.
Hailing from Leeds, he studied Philosophy, Politics and Economics at the University of Oxford. He also holds a Master of Public Health from the University of Manchester.
-
UK-US trade deal announced: US cuts tariffs on UK car imports to 10%
Keir Starmer and Donald Trump have announced a UK-US trade deal, but the US president has refused to lift baseline tariffs on most UK goods. What does it mean for the UK?
-
How to use mid-caps to diversify from the US
Medium sized companies are overlooked by investors but could offer an attractive ‘sweet spot’. We consider the case for mid-caps amid market volatility.
-
Will Comstock crash – or soar?
Opinion The upside for Comstock, a solar panel-recycling and biomass-refining group, dwarfs the downside, says Dominic Frisby.
-
'As AGMs go digital, firms must offer a new form of scrutiny for shareholders'
Opinion Technology has rendered big AGM meet-ups obsolete, but the board still needs to be held to account, says Matthew Lynn
-
Unilever braces for inflation amid tariff uncertainty – what does it mean for investors?
Consumer-goods giant Unilever has made steady progress simplifying its operations. Will tariffs now cause turbulence?
-
Two ways to tap into monopoly profits from airports
Most investors can’t get their hands on airports. Here are two ways you can
-
Fat profits: should you invest in weight-loss drugs?
The latest weight-loss treatments could transform public health and the world economy. Should you invest?
-
How investors could profit from Ramsden Holdings' four-part growth strategy
Ramsdens Holdings offers a diversified set of financial and retail services and a juicy yield, says Dr Michael Tubbs
-
How to invest in the booming insurance market
The insurance sector is experiencing rapid growth after years of stagnation. Smart investors should buy in now, says Rupert Hargreaves
-
Out of America's shadow: Why Trump's tariff chaos may be good for non-US stocks
Opinion Upending global investment and trade could benefit other countries at the expense of the US market, says Cris Sholto Heaton