It’s no secret that FTSE100 the index is currently enjoying the sun. But this is quickly becoming more of an extended Indian summer as January marked the Footsie’s seventh consecutive month of gains.

It was the longest monthly winning streak in over 12 years!

This is quite remarkable given the volatile last few months, with on-off tariffs, uncertainty about the fall budget, fluctuations over the AI ​​bubble, Venezuela, Greenland and more.

Another impressive record is that the FTSE 100 index recently rose by 1,000 points in the shortest time on record. According to them, it took just 171 days to go from 9,000 to 10,000. AJ Belldata.

The previous record, in the behind schedule 1990s, was 229 days, rising from 5,000 to 6,000.

The positive momentum continued through February, even as such data companies lost billions in value London Stock Exchange Group (LSE:LSEG) i RELAX yesterday (February 3).

As I write, the FTSE 100 is already above 10,400.

Why is it burning?

Last year, the blue-chip index returned 25.8%, including dividends. It was the fifth best year since its inception in 1984.

The return even broke through S&P500which is full of technology titans that resemble the corporate equivalents of nation states.

What’s going on here? Well, I don’t want to spoil the Footsie parade, but with hindsight it should be noted that 2025 was a very forceful year for most of the major global indices.

Compared to many of them, the FTSE 100’s return doesn’t look that spectacular.

Still, the index benefited from investors’ concerns about unpredictable U.S. government policies and high S&P 500 stock prices. Therefore, along with gold, it became a unthreatening haven in turbulent times.

We have seen increased interest from overseas investors looking to diversify their investments, and the FTSE 100 has also shone during more turbulent periods with a proliferation of defensively styled companies… The UK is a affluent dividend hunting ground.
Dan Coatsworth, Re: Bell.

Concerns about AI disruption

A regular criticism of the index is that it lacks fast-growing technology companies, particularly those involved in artificial intelligence (AI). However, this perceived Achilles’ heel has recently turned into an advantage as investors have begun to worry that AI may actually be a Pandora’s box.

That’s certainly how investors feel right now London Stock Exchange Groupor LSEG. After crashing more than 10% yesterday, shares of the financial data provider have fallen a shocking 40% in 12 months.

The biggest concern is that AI companies like Anthropic (with its Claude product) could poach customers who currently operate LSEG (Workspace/Refinitiv) data terminals. This cannot be completely discounted.

It is worth noting, however, that analysts, among others, UBS believes the risks are exaggerated. They point to LSEG’s data provision agreements with Anthropic, OpenAI (ChatGPT) and others.

Moreover, the forward price-to-earnings multiple has fallen to below 16. The forecast dividend yield is currently 2.2%, which adds weight to the investment case given LSEG’s consistent dividend growth for 15 years.

Of course, given the uncertainty, it takes a brave soul to stock up today. However, it’s worth noting that UBS has just set a 12-month price target for LSEG shares of £110. That’s 55% more than the current price!

On this basis alone, I believe this matter is worth investigating further.