FTSE 100 shares have to be due a little bit of reduction, mustn’t they? I’ve been taking a look at what the specialists suppose may occur in 2024.

It’s fascinating to see a ballot of traders by interactive investor. Practically half the respondents suppose the FTSE 100 will end subsequent yr between 7,500 and eight,000 factors.

I see a couple of headlines that recommend the UK inventory market might fall within the first half of the yr, as the consequences of financial slowdown and excessive rates of interest actually begin to chunk.

There’s a normal really feel that the yr will finish on the next notice, although.

Basic optimism

I’m optimistic about 2024. Extra so than the crowds, it appears. As I write, The Footsie is across the 7,500 degree.

Even when it rises all the best way to eight,000 factors, it’s nonetheless solely a 6.7% achieve. And that’s a bit beneath the long-term common annual efficiency. It’s hardly the factor that recoveries are manufactured from.

Nonetheless, I hope I’m flawed, and the pessimists are proper. It might imply extra time to purchase nice shares cheaply, and lock in even greater dividend yields.

Shares and sectors

However which shares do the specialists factor may shine in 2024?

I’m bullish concerning the monetary sector. Banks, insurers and funding shares look undervalued to me.

And some specialists are tipping Aviva to return good, as money circulate continues to enhance after the agency’s massive restructuring in recent times. Is that an indicator for the entire sector?

I believe there may nonetheless be some bloat within the business, and traders may wait to see how price management goes. But it surely’s one in every of my prime sectors.

Development to proceed?

Over at investing platform IG, I see ideas turning to momentum development shares.

Rolls-Royce Holdings has trebled prior to now yr, and Marks & Spencer has greater than doubled. And typically, what goes up does certainly maintain going up.

Each of these are solely marginally up over 5 years. So, extra to return?

I’m combined. I really feel Rolls is perhaps absolutely valued for now. However I’m warming in direction of M&S.

A yr for retail?

Constancy has M&S amongst its shares to observe too, and is bullish about quite a few retailers — together with Tesco and J Sainsbury.

I really feel we’d want rates of interest to return down earlier than people head again to the excessive avenue in sufficiently big numbers.

However there’s rising confidence that would occur earlier than too lengthy into 2024. So it is perhaps a very good sector to get again into within the early a part of the yr.

What ought to we do?

I like to see the shares that folks, non-public traders and professionals alike, suppose will do greatest within the subsequent yr. But it surely’s just for enjoyable, actually.

When it comes all the way down to my precise money, I’ll keep it up doing what I at all times do.

I’ll put my cash into the shares that I believe have one of the best long-term worth. And in the event that they’re ones the crowds don’t like, that’s a bonus. It means I get them even cheaper.