As UK shares soar, is it time to consider selling?

The FTSE 100 has stormed to over 9,000 factors, and a few of us should be questioning if it’s time to promote UK shares. It may may bag us a five-year acquire of near 75%, together with dividends.

However what counts is valuation.

What about Lloyds Banking Group? That’s up greater than 50% up to now in 2025 alone. There’s a ahead price-to-earnings (P/E) ratio of over 12 for the complete 12 months now, with the forecast dividend yield down underneath 4%.

I noticed Lloyds as a screaming discount a number of years in the past. However I’d say it’s removed from a no brainer now. With the uncertainties round economics and rates of interest, I don’t see a lot security buffer left. And I do see higher dividend prospects on the market.

I gained’t promote my Lloyds shares — however that’s as a result of forecasts for the subsequent few years predict sturdy earnings and dividend progress. With out that, there’d be different shares I like higher for the cash.

Worry of lacking out

The concern of lacking out (FOMO) can drive inventory costs up. There must be a number of that behind the factitious intelligence (AI) increase within the US that retains pushing the Nasdaq as much as ever larger ranges. And I can’t assist seeing a few of it in Rolls-Royce Holdings (LSE: RR.) right here.

The enterprise recovered remarkably effectively. And persons are nonetheless bullish about it, even after an increase of greater than 1,000% over 5 years.

The place does that FOMO factor are available? We must be trustworthy about our causes for purchasing a inventory. I’ve significantly thought-about Rolls-Royce a number of instances. However every time, it’s been effectively into its present bull run. And — honesty time — I’d been kicking myself for having missed out.

I recognised that and I held again. Maybe paradoxically, that recognition really led me to overlook out on later good points. However that’s high quality. I’ll by no means lose cash by lacking out on a increase — however I would if I get in too late out of that concern of lacking out. And it means I’m not contemplating shopping for Rolls-Royce shares now, so I’ll miss any new surge.

What about buyers who assume the Rolls P/E of 42 remains to be good worth primarily based on what they assume the enterprise can obtain in the long run? They need to clearly take into account shopping for. I’d simply urge anybody to look at any emotional aspect to investing choices fastidiously. And solely ever purchase for the precise cause.

So promote or what?

To get again to my headline query, I don’t ever recall a time after I’ve not seen shares I price pretty much as good worth. My present concerns embrace Taylor Wimpey — on a excessive P/E now, however forecast at 10.5 for subsequent 12 months, and with a predicted 9.3% dividend yield. Mortgage price strain’s a cause for warning although.

I’m additionally considering of including Authorized & Common to my Aviva holding. An 8.4% dividend yield? Sure please. Cowl by earnings is more likely to be skinny at finest for a number of years, so I’d be taking a danger on long-term outlook optimism.

However in brief, no, I don’t see it as a time to think about promoting out — only a time to be additional cautious of valuations.