The FTSE 100 didn’t reward investors particularly well in 2023. Over the 12 months, the index saw around 2% growth. 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.
Many investors ask themselves which is the better buy, the S&P 500 or FTSE 100 ? The US S&P 500 index has absolutely thrashed the UK’s Footsie over one, five, 10 and 15 years.
Our analysis for 2024 indicates:
- The Long term P/E of the FTSE 100 companies is 10.1 lower than the 17.5 of the S&P 500 companies.
- The Long term annual eraning growth of the FTSE 100 companies is 8.1% lower than the 16.0% of the S&P 500 companies.
- The 12 month expected dividend yiels of the FTSE 100 companies is 4.3% higher than the 1.5% of the S&P 500 companies.
