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The FTSE 100 index of shares is on target for its worst week to this point in 2025. Down 1.8%, it’s slumped as fears on potential ‘Trump tariffs’ — and the specter of retaliatory motion from the US’ commerce companions — steadily develop.
Information at this time (7 March) that Chinese language imports collapsed 8.4% in January and February hasn’t helped the temper, doubtlessly reflecting producers’ fears over the influence of latest commerce wars.
President Trump’s resolution to delay some tariffs this week offers motive for hope. However markets hate uncertainty, and extra volatility on the Footsie (and different main indexes) could be anticipated as blended indicators from Washington proceed.
However this shouldn’t trigger long-term traders to panic. The Footie is up yr so far and over 12 months. And I’m scouring the inventory market to any discover good bargains which were offered off within the panic.
Listed below are two I feel deserve severe consideration from savvy traders.
Smurfit WestRock
Packaging producer Smurfit WestRock (LSE:SWR) is one which’s grabbed my consideration. At £36.26, its price-to-earnings (P/E) ratio has tumbled to 14.2 instances for 2025 following latest value weak point.
However what’s actually appetising is its rock-bottom price-to-earnings development (PEG) ratio of 0.2. Any studying beneath one signifies {that a} share is undervalued. Smurfit shares clearly fall properly beneath this threshold.
Smurfit sells cardboard bins and different packaging merchandise throughout the globe, and is an particularly giant participant throughout Europe and North America. Nevertheless it faces important headwinds if punishing commerce tariffs are available to dampen shopper and enterprise spending.
On the plus aspect, its important publicity to defensive industries might assist restrict any turbulence. It sells product throughout every a part of the meals and drinks provide chain, and can also be a key provider to fast-moving shopper items (FMCG) and foodservice clients.
What’s extra, its earnings outlook stays strong over the long run. Main structural alternatives (like the expansion of e-commerce and rising markets development) exist. Moreover, its regular transition to offering sustainable merchandise places it extra in keeping with rising buyer wants.
With its ahead dividend yield additionally now peaking above the FTSE common (at 3.6%), I feel it’s a fantastic dip purchase to think about.
Scottish Mortgage Funding Belief
The Scottish Mortgage Funding Belief (LSE:SMT) is one other blue-chip faller I feel deserves severe consideration.
Tech trusts like this have fallen sharply as a result of cyclical nature of their holdings’ operations. However this isn’t the entire story. With giant holdings in SpaceX and Tesla, traders concern it could possibly be an oblique sufferer of the ‘Elon Musk commerce’ (with those that don’t align to his political beliefs shunning property and merchandise related to the billionaire).
These dangers deserve severe consideration. However I additionally imagine they might be baked into Scottish Mortgage’s ultra-low valuation.
At 980.2p, it now trades at a 14% low cost to its internet asset worth (NAV) per share. That is the widest it’s been for nearly a yr.
I additionally imagine that, on stability, the potential advantages of proudly owning Scottish Mortgage shares outweigh the dangers. Over a long-term horizon, I anticipate fast-growing tech sectors like synthetic intelligence (AI), cloud computing and robotics to drive earnings via the roof.
