The FTSE 100 has been all around the store recently. Like each different market, it’s taken successful from Donald Trump’s commerce tariffs.

Though perhaps it’s not wobbled fairly as a lot as folks suppose. I simply checked how the UK’s blue-chip index carried out final week and surprisingly, it climbed 4.6%, clawing again most of its current losses.

Issues are powerful, however not catastrophic. Over the previous 12 months, the FTSE 100 has edged up 5%, with complete returns pushing nearer to 9% as soon as dividends are included.

One motive it’s held up is that the index wasn’t overpriced to start with. The FTSE 100 is full of prime dividend-paying shares, the sort that bought left behind in the course of the US tech frenzy.

UK shares look good worth to me

With central banks more likely to minimize rates of interest to melt the affect of tariffs, UK earnings shares might grow to be much more enticing.

FTSE 100 shares have a tendency to supply greater yields than their US counterparts. Proper now, the common sits at 3.65%, versus simply 1.4% on the S&P 500.

If rates of interest fall, money and bond yields will comply with. However there’s no instant motive for dividends to drop. That might push extra traders again in the direction of shares.

Ten days in the past, I added British Airways-owner Worldwide Consolidated Airways Group to my SIPP. Earlier than that, I topped up on coach and athleisure agency JD Sports activities Trend. And earlier than that, I picked up extra shares in life insurer Phoenix Group Holdings.

All regarded first rate worth to me amid the present turbulence. I’m now absolutely invested. I don’t have a penny of my SIPP in money.

Annoyingly, which means I can’t snap up extra shares whereas they’re low cost. However I nonetheless count on to be rewarded when right now’s uncertainty clears.

I’m backing my Taylor Wimpey shares

One inventory I feel might rebound properly is housebuilder Taylor Wimpey (LSE: TW). Just some months in the past, its shares had been flying as markets priced in a number of rate of interest cuts for 2025, that might slash mortgage charges and revive demand for brand new houses.

Issues haven’t panned out that method. The Financial institution of England has delivered only one minimize thus far. Home price progress has slowed, with costs flat in February, based on the most recent HM Land Registry knowledge. Affordability stays a significant hurdle, and with the short-term stamp responsibility break having ended on 31 March, consumers now face greater prices too.

The Taylor Wimpey share price has slumped nearly 33% within the final six months, and practically 14% over the 12 months.

It appears to be like affordable worth at 13.7 occasions earnings, however the true attraction is the dividend. The trailing yield now sits at a whopping 8.4%, one of many highest on the FTSE. I maintain the inventory, and the subsequent cost hits my account on 9 Might. I can’t wait.

After all, right now’s issues might drag on, for months, perhaps even years. Taylor Wimpey’s shares may not bounce again shortly. However for now, the dividend appears to be like secure sufficient, and I’ll be reinvesting each penny to construct my stake, prepared for the restoration. When it does, I reckon my Taylor Wimpey shares could lead on the cost. No ensures although.