After years of lackluster returns, things may turn out for the UK’s largest stockpiles in
2022, according to the strategists at Goldman Sachs. “This year, the FTSE 100 is supposed to benefit from various forms of support”The investment bank’s strategists wrote in a note to clients.
A rate hike will benefit valuable stocks, while an expected rise in commodity prices such as oil and copper should also boost the UK benchmark.
From The Brexit referendum, The FTSE 100 lagged gains in the rest of the indexes, although Goldman attributes only a small portion of this poor performance to the UK and EU secession.
Tech heroes are missing from the catalog
The most important factor, in the opinion of these experts, is the lack of technological leaders in the index, which is dominated by banks and commodity giants.
The imminent tightening of monetary policy in markets developed to curb rising inflation will be an advantage this year for the FSTE 100 Index, given its peculiar composition. However, in the medium term, a shortage of high-growth companies will tend to hold back the UK’s leading indicator.
“Pension funds and insurance companies were in seller mode Strategists wrote that households tend to keep their wealth in deposits or housing. “The UK needs to attract foreign investment,” because “the lack of domestic stock supply may also be a factor holding back valuations.”
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