Investors who selected UK shares for their Isas 25 years ago have seen significant returns, especially if they reinvested dividends. While the FTSE 100 index showed modest growth, reinvested dividends boosted returns substantially. The FTSE 250 mid-cap index performed even better. Individual stocks like Reckitt Benckiser, Unilever, Imperial Brands, and British American Tobacco outperformed, while telecom stocks like Vodafone and BT underperformed. Mining stocks Rio Tinto and BHP Billiton delivered exceptional returns compared to oil majors BP and Shell. Retail stocks showed mixed results, with Tesco and Next standing out. Key lessons include the importance of valuations, diversification, and reinvesting dividends.

Younger investors are cautioned against believing in 'sure-fire' bets, as both stocks and bonds are inherently volatile. Historical data from the Global Investment Returns Yearbook highlights the significant risks and rewards associated with these asset classes. Diversification is recommended to mitigate risks, though it is not foolproof. The article emphasizes the importance of long-term investment horizons to increase the likelihood of positive returns, citing various historical examples and expert opinions.

The UK stock market's low valuation compared to the US is only partially explained by sectoral composition and Brexit. Rathbones' analysis shows a persistent discount even when adjusted for sector differences and other factors. The shift from UK equities to bonds by UK pension funds and general pessimism about the UK economy and stock market due to political uncertainty are also contributing factors. However, the UK is now seen as economically and politically stable, and with the potential for interest rates to fall and a 4% dividend yield on the FTSE 100 and FTSE 250, the UK stock market is becoming an increasingly attractive investment. Tom Stevenson of Fidelity International suggests that while a British Isa may not be the solution, it could highlight the valuation advantage of British shares.

The article explores investment strategies by comparing the performance of various funds during two distinct 18-month periods of market recovery. It highlights the success of equity funds like the Select 50, which benefited from the economic recovery post-Covid, and contrasts this with the underperformance of bond funds. The author concludes that a simplistic contrarian approach is not effective, advocating instead for maintaining a balanced portfolio to capture gains during short, explosive market recoveries.

Since October 7, there have been nearly daily attacks against US forces in Syria and Iraq, culminating in a drone strike on January 28 that killed three US soldiers at a base in Jordan near the Syrian border. The US maintains garrisons and outposts in the region, some to guard against the remnants of the Islamic State and others to support local partner forces. The drone that conducted the attack on Tower 22, likely made in Iran, followed a US drone's flight path to evade air defense systems. The Islamic Resistance in Iraq, including Kataïb Hezbollah, claimed responsibility for the attack, which was likely a response to US airstrikes that killed several of their militants. The Jordanian government initially denied the attack occurred on its soil, and the US is expected to respond with further airstrikes. The US presence in Syria, including at al-Tanf, remains after the defeat of the Islamic State, with several hundred soldiers in the Kurdish-controlled northeast and continued operations against remaining ISIS detainees.

Since October 7, US forces in Syria and Iraq have faced near-daily attacks, with a significant drone strike on January 28 killing three American soldiers at a US base in Jordan. The US maintains garrisons in Syria and Iraq to guard against Islamic State remnants and support local proxy forces, often targeted by Iran-backed militias. The attack on Tower 22, likely involving an Iranian-made drone, highlights the complex dynamics involving US, Iranian, and local militia forces. Despite the risks, the US continues its presence to counter Iranian influence and support Israeli operations, reflecting broader strategic interests in the region.

Israeli forces killed three Palestinian militants in a West Bank hospital, raising fears of escalating violence. The operation involved undercover agents and was completed in ten minutes. Israeli authorities claimed the militants used the hospital as a hideout, while Palestinian officials and Hamas denied these accusations. The incident is part of ongoing tensions since an October 7 attack, with significant casualties on both sides. Western nations have expressed concern over the violence, and peace negotiations involving multiple international actors are ongoing, though Israeli Prime Minister Netanyahu remains firm on military actions.

Japan's economy has benefited from moderate inflation and a weak yen, boosting exports and attracting foreign investors. Government initiatives have encouraged companies to prioritize shareholder interests, leading to increased dividends and share buybacks. However, the Bank of Japan's potential shift towards normalizing monetary policy and Japan's demographic challenges pose risks. The stock market's future growth depends on raising productivity and addressing the demographic deficit.

The Red Sea, a crucial maritime route, faces significant disruption due to Houthi attacks, leading major shipping companies to suspend transit. The Houthis' actions are a response to Israeli actions in Gaza and challenge US naval dominance. The US and allies have launched Operation Prosperity Guardian to protect commercial ships, but the crisis persists. The Houthis, now a dominant force in Yemen, continue to resist despite warnings and military actions from the US and UK. The situation highlights the absence of middle powers and China's limited response, leaving the US and its allies to manage the escalating conflict.

The article discusses the evolving nuclear dynamics among the US, China, and Russia, highlighting China's recent expansion of its nuclear arsenal and the implications for global security. It contrasts the views of experts like Andrew Krepinevich, who warns of a destabilizing tripolar nuclear power system, with those of Charles Glaser, James Acton, and Steve Fetter, who argue that the threat is overstated. The US's nuclear modernization efforts and the strategic responses from China are examined, alongside calls for renewed nuclear diplomacy to manage these complex relationships. The article underscores the potential risks of an uncontrolled arms race and the need for strategic stability.