FTSE 100 Soars: A Saver's Triumph in 2026

The FTSE 100 index has experienced its most robust growth this century, marking a significant rally for savers. As of February 2026, the index has climbed to 10,687, demonstrating an 8% year-to-date increase and a 25% rise over the past year. This period of strong performance has coincided with a notable rise in ISA millionaires, estimated to be around 20,000, a substantial increase from the 5,000 recorded in April 2023.

The current market surge, occurring despite a challenging UK economic outlook, is primarily attributed to the global operations of FTSE 100 companies. With an average of three-quarters of their revenues generated internationally and nearly two-thirds of their shares held by overseas investors, the index's performance is largely decoupled from domestic economic conditions.

Historical parallels are drawn to the dot-com boom of the late 1990s, particularly the influence of technological revolutions like AI. However, crucial differences distinguish the current scenario. Unlike the dot-com era, UK firms are not at the forefront of the AI boom, which is dominated by American companies. Instead, the FTSE 100 is benefiting from a rotation into established, less volatile sectors such as banking, resources, and defense.

Furthermore, structural changes in the London market, including regulatory shifts since 1997, mean UK institutions no longer possess significant stakes to sell, transforming the investment landscape. Valuations, while higher than the long-term average, remain competitive compared to global peers. The current investment fashion favors value over speculative growth, suggesting this trend could continue, offering opportunities for investors to capitalize on the final months of this bull run before the inevitable next bear market.