FTSE 100 Achieves Best Performance Since 2021 with 5.8% Growth
The FTSE 100 has recorded a 5.8% increase in 2024, marking its best year since 2021 despite some market challenges
FTSE 100, UK, London, Stock Market, Investment
There was a bit of a selloff at the end of December, but overall, it’s been a solid year. December didn’t quite deliver the expected ‘Santa rally,’ and the index dipped by 1.7% that month.
Still, when you look at the numbers, it’s impressive. Back in 2021, the FTSE 100 had a whopping 14.3% return, and since then, it’s been a bit of a rollercoaster with smaller gains in the following years.
After hitting an all-time high in May, the index struggled a bit in the second half of the year. Concerns about a potential US recession started creeping in, which didn’t help.
The summer was tough, with some disappointing economic data and mixed results from major companies causing a bit of chaos in the markets. While other markets bounced back quickly, the FTSE 100 faced challenges with inflation and slow growth.
Matt Britzman from Hargreaves Lansdown pointed out that the UK market just couldn’t keep up with the tech-driven excitement in the US. The FTSE 100 even took a hit in November due to budget speculations, reaching its lowest point since April.
The FTSE AIM 100 struggled even more, dropping over six percent this year, largely due to inheritance tax concerns. On a brighter note, the FTSE 250, which focuses more on domestic companies, saw a 5.7% increase, hitting its highest point since early 2022.
Tom Stevenson from Fidelity International mentioned that after a rocky 2023, things are looking up with stabilizing inflation and a better outlook for interest rates. Meanwhile, US stocks have been on fire, with a 28.5% return this year, thanks to a tech rally and strong corporate earnings. It’s been a wild ride, but there’s hope for a brighter future ahead!