It has been a strong year so far for many UK stocks.
The FTSE 100 has had a storming 2025 so far, for example.
It is up 18% since the start of the year and has repeatedly set new all-time highs along the way. The FTSE 250 is up by a more modest 7%, while the FTSE All-Share has moved up 16%.
Could things keep going well – and perhaps continue that way after next month, once 2025 gives way to 2026?
A strong market amid a mixed business environment
I think that there could, potentially, be more strong performance ahead of us.
After all, UK stocks have done well overall in 2025 even though it has been far from a banner year for the British economy.
Growth has been sluggish, and many businesses have complained about a rising tax and regulatory burden eating into their profitability. Consumer demand has been sluggish and there are lots of signs of tightening belts.
Yet that has not stopped the British stock market from powering ahead.
So I reckon it could keep doing well even if the economy remains sluggish. If there are clearer signs of growth, that could help support an even higher stock market.
Not immune from the global picture
Then again, we could yet see the stock market struggle between now and the end of the year. 2026 may not be a good one.
Why? Aside from the British economy, the international picture also weighs on the London market.
If there is weakness in global markets, that could hurt investor confidence in Britain and hurt UK stocks, even if Britain itself is doing fine.
We have already seen this in 2025. While it is easy to focus on the Footsie’s overall strong performance to this point in the year, that has been far from a smooth ride. The shock US tariff announcement in April shook markets on both sides of the pond.
The global economy continues to look fragile. Geopolitical risks remain elevated. That could weigh negatively on the London market.
Here’s my approach as we head towards 2026
Clearly, nobody knows for sure where the stock market might go from here.
Whatever happens to the wider market, though, some individual shares may be expensive while others are cheap.
That is why, rather than buying the market, I am looking for individual UK stocks to add to my portfolio.
One I have bought in recent months is scientific instrument maker Judges Scientific (LSE: JDG).
The global economic weakness and geopolitical risks I mentioned above have hurt Judges. Demand in some markets including China remains subdued.
Some US educational institutions have seen budgets slashed. I see that as an ongoing risk for Judges’ revenues and profits.
But the medium-sized UK company has built a profitable business focussed on a market where customers are willing to pay premium prices for top-quality products.
Over the long run, there will be sustained demand for measurement instruments. Judges has been careful not to overpay for acquisitions. Its centralised business services mean it can wring efficiencies out of small instrument makers it buys up.
That helps explain why it has consistently delivered double-digit grown in its annual dividend per share.
I like that business model and see sizeable room for future growth at the firm.
