That matters over decades. Small differences in quality can become big differences in outcome when returns are left to compound for 20 or 30 years.

For that reason, I think a retirement-focused portfolio should start with businesses that are financially resilient, easy to understand and capable of producing steady returns through different market conditions.

Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.

Three starter stocks to consider…

For a British investor opening a first SIPP, three names worth considering are Unilever, National Grid and Prudential (LSE:PRU). They sit in different parts of the market, which helps spread risk.

Unilever has the sort of profile many novice investors like in a pension. It sells everyday brands people keep buying in good times and bad, which can help support cash generation.

National Grid’s different, but just as useful in a long-term portfolio. Its regulated business model gives it a defensive feel, and that can be valuable when markets get choppy.

Prudential adds more growth potential. It’s not a sleepy stock, but it gives a SIPP exposure to insurance and asset management, plus a stronger link to Asia than most UK shares.

Why Prudential works

Insurers can make sense for investors who want financial exposure without buying a bank. They provide diversification within the financial sector without the same loan-book and credit-risk swings that typically come with bank stocks.

And Prudential is often cited as a leader in the UK insurance industry. In its 2025 full-year results, underlying operating profit rose 10% to $3.1bn and annual premium equivalent sales rose 7% to $6.2bn. Latest figures suggest funds under management at Eastspring, its Asian asset management business, sit at $275bn.

That gives the company a few attractions:

• It has a large life insurance and savings franchise.
• It has fee-earning, asset-management businesses that can lift earnings over time.
• It offers exposure to higher-growth Asian markets.
• It has potential for stronger growth in assets under management than slower-moving UK defensive stocks.

But even the most reliable stocks come with risk. Prudential’s exposed to market swings, currency moves and the Chinese economy, where trading conditions can be uneven. It also faces regulatory pressure and the usual risks that come with insurance, including claims trends and investment-market volatility.

Building patiently

For a SIPP, I’d rather add money regularly than try to invest one large lump sum at the ‘right’ moment. Pound/cost averaging can soften the impact of market noise.

This approach also makes it easier to stay calm. Solid, reliable stocks reduce the temptation to guess the market’s next move.

Unilever, National Grid and Prudential are all sensible starter stocks to consider when opening a first SIPP — but they’re not the only ones. The FTSE 100 has plenty more names that can play a similar role, from income machines to defensive compounders.

Should you invest £5,000 in Prudential Plc right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Prudential Plc made the list?

Mark Hartley owns shares in National Grid and Unilever.

The post Thinking about a SIPP for retirement? Here are 3 starter stocks to consider appeared first on The Twelfth Magpie.

However, the amount needed to reach that target is far less fixed than many people assume. It depends not only on the size of the portfolio, but also on the income characteristics of the underlying investments.

Why £100 a day isn’t a fixed target

If an investor is targeting £36,500 a year at a 4% yield, then an ISA portfolio of £912,500 would be required. But that assumption breaks down quickly once you adjust the income yield. This is highlighted in the following table:

The gap between these outcomes highlights the key point: the ‘£100-a-day target’ is not a single number at all, but a range defined by the income profile of the underlying portfolio.

That makes the real challenge not simply reaching a fixed capital figure, but building a portfolio capable of sustaining and growing its yield over time.

Beyond current yield

Prudential (LSE: PRU) is a clear example of a stock where focusing on the current yield alone can be misleading.

On the surface, it doesn’t look like an obvious income stock. The dividend yield is around 2%, which would normally place it outside many passive income portfolios.

However, that headline figure hides a very different underlying picture.

In 2025, earnings growth translated into a 15% increase in dividends per share (DPS), alongside continued strong capital generation.

What I particularly like is management’s commitment to returning excess capital to shareholders. To me, that reflects confidence in the strength and sustainability of the underlying business.

The company expects to return more than $7bn to shareholders between 2024 and 2027 through a combination of dividends, share buybacks, and proceeds from asset disposals. Central to this is a clear dividend framework, with management targeting annual DPS growth of more than 10% in both 2026 and 2027.

Alongside this, the insurer plans to repurchase $500m of shares in 2026 and a further $600m in 2027. These returns are being supported in part by the disposal of part of its stake in ICICI Prudential Asset Management. The company’s IPO in December 2025 was one of the largest in Indian stock market history, and Prudential remains a significant shareholder.

Bottom line

The main risk is that these ambitious shareholder return plans depend on continued growth across Asia. A weaker economic backdrop could reduce demand for savings, insurance, and protection products, potentially slowing earnings growth.

Nevertheless, the stock is a good example of an evolving income story. Rather than relying on a high starting yield, investors are effectively backing the company’s ability to grow earnings, dividends, and shareholder returns over time.

For anyone targeting a meaningful passive income stream, that highlights an important point. The most attractive opportunities are not always the stocks with the highest yields today, but the businesses capable of delivering much higher payouts in the future. That’s why it’s one worth considering.

Should you invest £5,000 in Prudential Plc right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Prudential Plc made the list?

Andrew Mackie owns shares in Prudential.

The post How much do you need in a Stocks and Shares ISA to generate £100 a day in passive income? appeared first on The Twelfth Magpie.

Short-term noise

One stock that I believe is being unjustly discounted today is Asian-focused insurer Prudential (LSE: PRU). The share price is down around 20% in a month.

I would attribute this mainly to renewed scrutiny of cross-border financial flows into Hong Kong from mainland China.

Mainland visitor policies have historically accounted for around 30% of industry-wide life-sector new business, so any tightening naturally impacts sentiment. The aim appears to be to reduce unauthorised cross-border investment activity from the mainland.

This type of headline-driven market reaction is often where opportunities emerge, particularly in a sector that already screams as undervalued, to me.

Consistent compounder

Prudential’s business model is very different from that of a typical domestic insurer. Rather than relying on the mature UK market, it sells life insurance, savings, health, and protection products across some of Asia’s fastest-growing economies.

What makes the business particularly attractive is how it reaches customers. A large proportion of policies are sold through long-term partnerships with major banks, giving it access to millions of customers without the cost of building a vast branch network itself.

That distribution advantage continues to pay off. In 2025, the insurer delivered double-digit growth in new business profit, with broad-based contributions from markets including Hong Kong, Mainland China, Indonesia, and Malaysia.

A major driver has been its bank distribution network. Since 2022, new business profit from this channel has grown at a compound annual rate of 12%. This has been driven by a greater focus on higher-margin health and protection products rather than lower-value savings plans.

Meanwhile, the company has also been improving the productivity of its agency force. Rather than simply recruiting more advisers, it has focused on generating more business from each one through bespoke training programmes.

For me, that’s what makes the recent share price weakness interesting. Beneath the regulatory headlines sits a business that continues to grow, strengthen its distribution network, and improve the quality of its earnings.

What could go wrong?

The main risk is that Prudential’s growth ambitions depend heavily on Asia’s economic outlook.

Rising wealth levels and growing demand for financial products create a compelling long-term opportunity. However, weaker consumer confidence or slower economic growth could reduce demand for insurance and savings products.

Given its exposure to markets such as China and Hong Kong, investor sentiment can deteriorate quickly when economic concerns emerge.

However, when I look at the bigger picture, the opportunity remains enormous. Insurance penetration remains in the low single digits across many of Prudential’s core markets. Meanwhile, China’s population continues to age rapidly. By 2040, around 28% of the country’s population is expected to be over 60.

Wealth creation across Asia is accelerating too. The region now accounts for roughly 30% of global wealth.

With these long-term positive trends in place, I recently added to my position during the share price weakness. I believe the market is underestimating the company’s long-term potential.

Should you invest £5,000 in Prudential Plc right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Prudential Plc made the list?

Andrew Mackie owns shares in Prudential.

The post FTSE 100 value stocks: where has the market become too pessimistic? appeared first on The Twelfth Magpie.

Want to know how you could achieve a huge passive income with dividend stocks? Here are five steps to get started on your journey.

Trim tax

The first task is to reduce or eliminate taxes completely. Over time, the contributions you make to HMRC can significantly drain your wealth.

I love the idea of the Stocks and Shares ISA for this reason, and hold one myself. With these, no tax is paid on capital gains or dividends. The result is more cash in your pocket to boost compound gains.

Then when you’re ready to start drawing the dividends you receive, no tax is due on those either.

Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.

Diversify for the win

The next step is to build a diversified portfolio. We’re talking about companies from different stock markets and which have exposure to a variety of regions and industries.

This can be achieved by buying individual shares. You can also utilise this strategy by taking positions in investment trusts and exchange-traded funds (ETFs).

A diversified approach can help you reduce risk while still targeting incredible returns. If you’d invested in a FTSE 100 ETF a decade ago, for instance, you’d have achieved an average annual return above 9%.

A top dividend opportunity?

A mixed portfolio should also comprise different categories of shares, namely:

• Growth shares for long-term capital appreciation.
• Value shares that can rise in value and protect you from market volatility.
• Dividend shares for solid returns across the economic cycle.

Let me tell you about Prudential (LSE:PRU), a share I hold in my ISA for passive income. Dividends are never guaranteed, and especially during economic downturns. In this regard, ‘The Pru’s’ track record of 22 dividend increases in 23 years deserves serious attention from investors.

Prudential’s confident it can keep this record going, pledging to keep raising payouts by at least 10% through to 2027. I’m hopeful it will too, given the firm’s strong balance sheet that’s also supporting share buybacks.

Prudential’s a market leader in life insurance, health insurance and asset management, and is focused on Asian regions where demand’s booming. It’s experiencing some problems in China right now, which could put a drag on profits near term. But this isn’t expected to derail its dividend growth story, and City analysts agree.

Consider high-yield shares

With a diversified portfolio like this, I think an average annual return of 9% is very achievable. This is important, as it could turn even a modest monthly investment like £300 a month into an impressive £549,223 after 30 years.

The question is, what kind of passive income could an ISA this size deliver? The answer is £38,446 tax free, if invested in 7%-yielding dividend shares.

Should you invest £5,000 in Prudential Plc right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Prudential Plc made the list?

Royston Wild owns shares in Prudential.

The post 4 steps to building a £38,456 retirement income with ISA shares appeared first on The Twelfth Magpie.

The business is delivering strong signs of sharply rising earnings momentum across its core Asian markets. And its improving cash generation adds further support to an upwards re-rating.

So what sort of higher valuation are we looking at?

What are the growth drivers for a higher price?

A higher valuation can only be justified if the growth engine is firing strongly. A risk to this for Prudential is any slowdown in key Asian markets, particularly Hong Kong or mainland China. Another is any sustained rise in healthcare costs, which could also squeeze its margins.

That said, analysts forecast its earnings will grow by an average of 20.9% a year over the medium term at least. The projections look an underestimate to me, given the firm’s last set of major results (full-year 2025 released on 18 March 2026).

These saw IFRS profit after tax soar 69% year on year to $4.119bn (£3.07bn). This illustrated the benefit of rising productivity, stronger bancassurance margins and sustained demand across Greater China and Asia.

New business profit jumped 12% to $2.782bn, reflecting Prudential’s multi‑market distribution model and the continued expansion of higher‑margin health and protection products.

And operating free surplus cash flow generated from in‑force insurance and asset management grew 15% to $3.059bn. The rise underlined improved claims management and disciplined cost control.

What sort of valuation is ‘fair’ here?

Fair value for a stock reflects an underlying business’s key fundamentals. This is completely different from price, which is just a transitory marker of wherever the market decides to trade at any point.

It is important to know where a share’s fair value lies because historically, stock prices tend to converge to this value over time. And every savvy professional investor I have known uses discounted cash flow (DCF) analysis to ascertain where any stock’s fair value is.

It achieves this by projecting a business’s future cash flows and discounting them back to today. Where those projections become less certain, the discount rate applied increases.

Because different analysts’ assumptions in the modelling may differ, the outcomes can be more bullish or more bearish than others. Based on my own framework — including a 7.4% discount rate — Prudential looks 46% undervalued at its current £11.29 price.

That implies a fair value of £20.91, nearly double the price today. So, if markets continue drifting toward fair value and the DCF modelling holds good, this could be a terrific potential buying opportunity now.

My investment view

Prudential is delivering some of the strongest earnings momentum in the FTSE. IFRS profit, new business profit and operating free‑surplus cash flow are all rising at double‑digit rates.

And its core Asian markets continue driving higher‑margin growth, supported by expanding distribution and sustained demand across health and protection.

Yet despite this, the shares still trade at a massive discount to fair value by my reckoning. That huge disconnect makes them well worthy of investor attention, in my view.

I already have several holdings in the same sector, so will not buy another. Instead, I am looking at similarly deeply undervalued stocks, but with high yields as well, in other sectors.

Should you invest £5,000 in Prudential Plc right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Prudential Plc made the list?

Simon Watkins does not hold any positions in the companies mentioned.

The post How much value is left in Prudential shares at around £11 after a 37% rise this year? appeared first on The Twelfth Magpie.

For those with Stocks and Shares ISAs, this opportunity comes at a good time as many investors will be looking to top up their accounts with fresh capital in the next few weeks before the 5 April deadline. So, which are some good shares to consider?

Projected to rise nearly 30%

Scanning the FTSE 100, one name that looks attractive to me today is Prudential (LSE: PRU). It’s a well-established insurance company that’s focused on the high-growth Asian and African markets.

It’s currently trading for around 1,090p, down from around 1,230p in February. At the current share price, the stock’s price-to-earnings (P/E) ratio is 12.1, falling to 10.5 using next year’s earnings forecast.

These earnings multiples are below market averages. Note that the average analyst price target for the stock is £13.83 – about 27% above the current share price.

Earlier this week, Prudential posted its results for 2025 and they were strong. For the year, new business profit grew 12% per cent to $2.8bn.

On the back of this performance, the company hiked its dividend by 15% (signalling management is confident about the future). It also announced some sizeable share buybacks.

In the results, CEO Anil Wadhwani said that structural demand for its products in Asia and Africa continues to rise due to increasing protection, retirement, and wealth needs of consumers. He added that the company is carrying the momentum from 2025 into 2026 and that it’s confident of generating double-digit growth this year.

It’s worth pointing out that a major economic slowdown across Asia is a risk with this stock. This could lead to a temporary dip in demand for the company’s financial products.

Taking a five-year view though (our preferred time horizon here at The Motley Fool), I see a lot of potential. I think this stock is worth a closer look right now while it’s down.

A dividend yield of 7.6%

Now, one downside to Prudential is that its dividend yield isn’t very high. Currently, it’s only about 2%.

An alternative option for those seeking higher levels of income is M&G. This is a savings and investment company that was split off from Prudential back in 2019.

It currently sports a yield of about 7.6% (one of the highest yields in the FTSE 100). It’s also very cheap though – the forward-looking P/E ratio is around 10 right now.

Of course, this stock has its own risks. A major stock market meltdown is one – this would hurt its profits.

Again though, taking a long-term view, I see potential for attractive returns. I think it’s worth considering at current levels.

The post As the ISA deadline approaches, UK investors have the opportunity to buy cheap shares appeared first on The Twelfth Magpie.

Want to see what I’ve found? Read on to find two FTSE heroes I think could be too cheap for investors to ignore.

Home comforts

Risks are growing for Berkeley Group (LSE:BKG) as conflict in the Middle East intensifies. Leaping oil prices are fuelling inflationary pressures, and with them hopes of interest rate cuts. A much-expected reduction in Bank of England (BoE) lending rates this month may now have been kicked into the long grass.

Higher interest rates are extremely damaging to home sales by crimping buyer affordability. But could this be baked into Berkeley’s cut-price valuation? I think so. The housebuilder trades on a trailing P/E ratio of 10.6 times.

Over the long term, I remain convinced this FTSE 100 stock retains excellent investment potential. This is thanks to its focus on London and the South East, where severe market undersupply is supporting prices. Real estate services specialist Savills predicts average property values in the capital will rise roughly 14% between now and 2030.

As I say, the interest rate outlook is more uncertain now than it was just a week ago. But on the whole, the broader picture regarding borrowers remains encouraging for Berkeley and its rivals. The BoE is likely to keep cutting rates to kickstart the UK economy when it can. Buyers should also being helped by a fierce mortgage rate war that’s steadily intensifying as challenger banks move in. That’s despite some mortgage rate rises last week in response to the Iran situation.

With the British population rapidly growing, I expect Berkeley’s profits to grow strongly between now and the end of the decade. I feel now represents a good time to consider buying.

What about The Pru?

Berkeley’s share price is up 9% over the last 12 months. That’s not a bad return, but Prudential (LSE:PRU) has blown it out of the water. Its share price is up a whopping 42% since last year.

Yet I believe it still offers excellent value and is worth considering. Its trailing P/E ratio is 10.7.

So why are The Pru’s shares trading so cheaply? It’s safe to say jitters remain over the health of the key Chinese recovery. Last week Beijing predicted its slowest rate of annual growth since the early 1990s for this year. The Middle East crisis hasn’t helped things either.

Investors shouldn’t write off these risks, but Prudential’s long record of resilience soothes any nerves I have as a shareholder. New business profit continues to beat expectations, up 10% in January to September according to latest financials. I’m optimistic earnings can keep rising as demographic factors drives broader financial services demand and Prudential pivots towards higher-margin products.

Given low product uptake in its emerging markets, I think Prudential has incredible growth potential over the next decade. Statista expects Asian life insurance premiums to grow 5.3% a year between now and 2035.

The post 2 insanely cheap FTSE 100 shares to consider buying today! appeared first on The Twelfth Magpie.

Crunching the numbers

A £2,000 monthly passive income works out at £24,000 a year. Under the widely used 4% rule – which suggests withdrawing 4% annually gives a portfolio a strong chance of lasting 30 years or more – that implies a target pot of roughly £600,000.

That’s the goal.

But with 24 years to go until 2050, markets won’t move in a straight line. There will almost certainly be crashes, rallies, and long periods of uneven returns along the way.

So what might that journey actually look like?

The road to £600k

To see how realistic that target might be, I projected a range of possible market journeys between now and 2050.

In this example, an investor starts with £30,000 and adds just under £250,000 over the next 24 years. Returns average around 7% annually – but not in a straight line.

I built in two 20% stock market crashes: one early on and another midway through, each followed by uneven recoveries. Crucially, contributions continue throughout, dividends are reinvested, and compounding quietly gathers momentum in the background.

Chart generated by author

The darker central band shows the most common outcomes. The lighter areas reflect more extreme results.

Here’s a key takeaway: most outcomes cluster between £550,000 and £650,000 by 2050. Even with two major downturns, the £600,000 target sits comfortably in the middle of the most likely range.

A low-cost FTSE 100 index fund is one way to approach that goal, but even a small boost in returns compounds dramatically over 24 years. One stock I’m personally keeping an eye on is Asian insurance giant Prudential (LSE: PRU).

Prudential shares are strong right now

Prudential is the kind of under-the-radar stock most investors overlook, preferring UK-focused insurers with higher dividend yields. Yet over the past year, the shares are up around 60%, reflecting strong performance and long-term growth potential.

Insurance penetration in the company’s core Asian markets remains in the low single digits, with a protection gap estimated at over $100trn – providing decades of structural growth opportunities.

Its extensive distribution network, combining highly trained agents with partnerships at leading financial institutions, gives the business a clear competitive edge.

The company’s capital-light model aims to return more than $5bn to shareholders between 2024 and 2027 through dividends, share buybacks, and potential proceeds from its India Asset Management business. Meanwhile, new business profits and operating surplus have been steadily rising, with dividends expected to grow around 10% annually over the next few years.

Given its large exposure to China, Prudential faces meaningful risks. Ongoing US-China tensions, a potential slowdown from the country’s property market challenges, and currency fluctuations could all contribute to short-term profit volatility.

This is why maintaining a diversified portfolio across shares and sectors remains essential. Over time, a disciplined approach can help build a rising passive income stream – all tax free inside a Stocks and Shares ISA.

Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.

The post The shocking ISA balance needed for £2,000 a month passive income in 2050 appeared first on The Twelfth Magpie.

Today, I’ve been looking for other Footsie stocks that might pull the trick off again. I’ve perhaps unearthed a hidden gem in the insurance sector poised for a rip-roaring 2026.

Wind is blowing

My methodology here was simple: I wanted to find the stock with the best analyst ratings on the FTSE 100. While analysts aren’t fortune tellers, they are often a sign of which way the wind is blowing.

In this case, analysts are giving glowing ratings to insurance giant Prudential (LSE: PRU). Every single analyst covering the stock has it down as a Buy or an Outperform and it might be the most positively thought of stock on the index.

The consensus target for the next 12 months is a 21.7% increase, potentially turning £10k into around £12k. On the high end, we have a price target expecting a 44.1% increase, which would turn £10k into over £14k.

Does that sound a bit optimistic? Not if we look at the last year. The Prudential share price rose 56% in 2025, and a lot of analysts are expecting that momentum to keep going.

Impressive bumps

One possible fly in the ointment is a relatively meagre dividend yield. A chunky dividend payment means cash in the bank whatever the share price is doing. And the 1.60% yield from Prudential looks miserly indeed when compared with competitor Aviva, which is currently paying 5.65%.

While the payment as a percentage is not likely to set pulses racing, there is another way to look at this. For one, a lower yield often signals better growth prospects. A stock can command a premium if the share price has the potential to increase in value. That’s another reason to think the bullish analysts might be onto something.

But also, for long-term investors, we don’t want the highest possible yield in the first year or two of owning a stock. We want to see consistent increases over time, so we’re always earning more and more the longer we hold a stock.

Prudential’s track record looks pretty good on these terms – the company has increased the dividend for 22 years out of the last 25, managing impressive 10%-15% bumps on many of those occasions. Although the massive slash during the pandemic is worth pointing out too.

The unpredictable nature of markets and indeed the world in general means all predictions need to be taken with a rather large grain of salt. But as far as attractive-looking FTSE 100 stocks go, I think Prudential could be one for investors to consider.

The post Will this FTSE 100 stock turn £10k into £14k over the next 12 months? appeared first on The Twelfth Magpie.

Going for gold

Choppy gold prices have caused investors to reevaluate the investment potential of precious metals stocks. Bullion values are still up 73% on a 12-month basis. But they could drop sharply again if profit taking resumes, driving gold shares lower again.

On balance, though, I’m optimistic the yellow metal’s multi-year bull run remains intact. As a result, I think miners like Fresnillo (LSE:FRES) will keep on climbing.

Research late last week from the World Gold Council (WGC) have fed my optimism. It showed global gold-backed exchange-traded funds (ETFs) attract inflows of $19bn in January, the highest monthly total in history.

While impressive, that wasn’t my key takeaway. I was more encouraged by the WGC’s comments that “even with the recent price decline, all regions except Europe saw net inflows on both 30 January and 2 February, as investors appeared to take advantage of the dip to add exposure to gold.”

This reflects the strength of underlying demand for the yellow metal. I’m expecting key drivers like a declining US dollar, falling interest rates, rising geopolitical tensions, and growing worries over an AI bubble to keep feeding demand for the safe-haven asset.

Investing in mining stocks over gold itself carries higher risk, reflecting the unpredictable nature of metal excavation. But it can also lead to far greater rewards — Fresnillo’s share price is up 387% over the last year, comfortably outpacing the gold price.

Yet Fresnillo shares still look cheap at £36.94. City analysts think earnings will soar 75% in 2026, leaving it trading on a price-to-earnings (PEG) ratio of 0.2. Any reading below one indicates a share trading below value. I think it’s a top share to consider following recent price volatility.

Another FTSE 100 bargain

Prudential (LSE:PRU) shares have risen even more sharply than the FTSE 100 in recent times. Up 73% since this time last year, they’ve comfortably outpaced the broader Footsie‘s 18% rise.

Yet years of underperformance prior to 2025 mean the life insurer still looks very cheap on paper. City analysts think The Pru’s earnings will soar 14% this calendar year. This leave it on a forward PEG ratio of 0.9.

That’s not all — a predicted 15% bottom-line rise in 15% in 2027 leaves a PEG of 0.8 for next year.

Why is Prudential’s share price surging right now, though? It essentially comes down to improving investor sentiment towards Asian economies, which are now beginning to pick up after a post-Covid slump.

Prudential’s a major player across Asia Pacific, and has a presence in the region’s economic hotspots like China, Hong Kong and Singapore. It faces significant competitive pressures, but the opportunities for it to supercharge profits are huge

Deloitte predicts Asia’s life insurance market to grow a healthy 5.3% a year to 2053, driven by exploding wealth levels and population sizes. Latest financials showed Prudential grew new business profits 13% in Q3. I expect the FTSE firm to keep delivering, helped by its strong brand and operational expansion.

The post 2 dirt-cheap FTSE 100 shares to consider this week! appeared first on The Twelfth Magpie.