I’ve been loading up my SIPP in recent weeks, because this market turmoil feels like a rare chance to buy my favourite FTSE 100 stocks at bargain prices. In doing so, I hope to lay down foundations for long-term wealth.
Having said that, I look at my Self-Invested Personal Pension with trepidation. It’s no fun seeing what recent stock market volatility has done to my existing holdings. However, history shows that periods like this can offer the best buying opportunities for those thinking in decades, not days.
FTSE 100 shares are on sale today
The recent Trump-led tariff chaos has knocked markets hard, particularly in the US. The S&P 500 has tumbled more than 12% this year.
By contrast, the FTSE 100 has been far more resilient. It’s roughly where it started the year.
Markets move in cycles, and when sentiment shifts, it can swing hard. UK shares have looked great value relative to the US for ages. Now they’re starting to show their merits.
Dividends also help take the sting out of waiting. While the outlook remains cloudy, there’s comfort in solid blue chips paying steady income and trading on sensible price tags.
Long-term growth and value
I’ve had my eye on private equity and alternative asset manager Intermediate Capital Group (LSE: ICG) for some years.
I thought investors had missed their chance to buy the stock, after it enjoyed a strong 2023 and 2024. Now we may all have a second chance.
Its shares have fallen 15% over the past month and are down 14% over the last 12 months. Over five years, they’re still up 85%, which says a lot about the business’s long-term strength. I put the recent dip down to poor sentiment rather than company-specific fundamentals.
ICG’s most recent trading update, published on 22 January, showed it added $7.2bn in new fundraising in the final quarter of 2024 alone. That lifted the year’s total to $22bn, more than double the 2023 figure.
Assets under management grew by 5.1% that quarter to $107bn, with fee-earning assets up 8.1% year on year.
That was before Donald Trump’s trade tariffs struck, and markets were in better spirits than today. The Intermediate Capital Group share price now looks good value trading at just 10.8 times earnings. On top of that, the dividend yield has risen to 4.6%. Impressive, from what I’ve always seen as a growth play.
There are risks. Prolonged global trade uncertainty could hit returns from private equity markets, which are at the riskier end of the investment spectrum. Today’s high interest rates aren’t helping, driving up the cost of capital and slowing small business growth.
Long-term value from short-term chaos
Analyst forecasts always need a pinch of salt at the best of times, but the 16 analysts covering ICG have produced a median 12-month price target of just over 2,406p. That’s almost 40% higher than today’s 1,728p. However, most of those calls will have been made before the recent wobble, and may be outdated.
SIPP investors considering the stock must understand the risks, and make sure it fits in with other holdings. But with a long-term view, I think it’s worth considering today.
