The FTSE 100 has been left out of the “AI mania” gripping global markets, but the UK’s blue-chip index made new record highs in May and is up 7% for the year. London’s bias towards “old economy” sectors such as raw materials and banking have held it back in recent years, but that weakness has turned into a strength. Commodities are real assets and thus look attractive in a time of persistent inflation, while higher-for-longer interest rates will boost bank profits. The prolonged uncertainty following the 2016 Brexit referendum prompted investors to attach a higher risk premium to UK equities. Yet calmer political waters in Britain (there is little difference between Labour and the Conservatives on macroeconomics) mean that the Brexit risk premium now looks to have disappeared. Meanwhile, UK stocks are paying twice the dividend available in many comparable markets, but continue to trade near a record-low discount.