Depending on which article I just read, the file FTSE100 is experiencing gangsterism or is on the verge of crisis. From my perspective, the Jekyll and Hyde nature of London’s leading index raises some burning questions.

Questions like: what’s happening with the FTSE 100? Is Footsie headed for a terrible disaster? Or are there tons of great stocks to buy right now (and what are they)? Let’s try to answer them.

The tip of the iceberg

At first glance, the FTSE 100 is doing great. Records keep breaking. The index continues to perform better than its American counterpart, i.e S&P500. Everything looks good and elegant. However, there are several monsters lurking under the bed.

It was the technology companies from the FTSE 100 index and its neighboring companies that were supposed to benefit from artificial intelligence, but the opposite is happening. Only last year. RELAX dropped by 36%, Right move decreased by 34%, a London Stock Exchange dropped by 31%. These are colossal declines and could be just the tip of the iceberg if AI continues to improve.

The completely unrelated introduction of weight loss drugs was a hammer blow to many companies in the restaurant and alcohol industries. Over the past two years, while the FTSE 100 index has risen, Diageo dropped by 42%, Whitbread decreased by 22%, a Related British Food Products dropped by 28% – thanks to investors’ expectations that people would eat and drink less.

All of this is one of the reasons why investors like me like to pick individual stocks. With an index fund that tracks the entire market, you are lumped in with losers and deadweight. By selecting a compact basket of individual companies, you have the opportunity to personalize your portfolio of the best available shares. Of course, there is a risk that you will choose some needy results and end up with a worse than average result as well.

A unique case

One stock I think is worth considering today is the company HSBC (LSE: HSBA). The bank is currently the largest company listed in the FTSE 100, with a market capitalization of £200 billion, and yet the share price has increased by 202% in the last five years.

Banks are traditionally considered a defensive sector. These are imperative businesses that fresh technology cannot destroy. This often makes them safer investments in the long run. Some studies even predict that banking will be one of the areas that will benefit most from the adoption of current AI models.

While the UK has a vivid financial sector, HSBC is a unique case due to its exposure to Hong Kong and China. The world’s second most populous country continues to grow its GDP at 5% per year, which offers more opportunities than many Western countries that struggle to grow above 1% per year.

However, the Chinese focus on a double-edged sword. Some worry about the accuracy of economic data coming out of the country and the potential for government overreach. This is a risk for the bank, which derives more than 50% of its profits there.

To sum up? Time will tell whether the quirky nature of the FTSE 100 and some of its constituents continues, but the index will always be rife with compelling opportunities. I think HSBC may be one of them right now.