The FTSE 100 didn’t reward investors particularly well in 2023. Over the 12 months, the index saw around 2% growth, with some companies like Rolls-Royce outperforming massively, and others, like Vodafone, underperforming.
However, there are signs 2024 could be a better year. The index rose 3.2% in December as traders started forecasting significant interest rate cuts in the year ahead.
So if we are lucky enough to experience a rally, who could be the big winners?
What could push the index up?
As the Bank of England lowers interest rates in 2024, fixed-income assets, like bonds and cash, will likely become less appealing, due to diminished yields. As such, investors may shift towards stocks seeking better returns.
This transition can push stock prices higher, driven by the search for more lucrative investment opportunities in the stock market amid a lower-yield environment for traditional fixed-income assets.
In simple terms,…
