Following some pretty severe market falls earlier this week, the FTSE 100 index of leading UK company shares appears to be making a reasonable recovery.
Morgan Stanley strategist Graham Secker has today lifted his target for the FTSE 100 at the end of 2010 to 5,800 from a previous target of 5,000.
This new target view reflects the prospects for continued economic recovery. In fact, Secker gave four reasons for his renewed optimism:
1 – Global economic growth is recovering, especially in Asia, the emerging markets and the US;
2 – Recent events are likely to delay any efforts to reduce monetary stimulus/hike base rates;
3 – The financial system is more robust now given banks’ balance sheets are stronger;
4 – The oil price is below $70 today versus $130 two years ago.
So, where do you think that the FTSE 100 is going to finish the year?
Leave your target figure in the comments below and the person who predicts the closest target will win a signed copy of Anthony Bolton’s book Investing Against the Tide.
In the event of a tie, we will pull a name from a hat.
The winner will be announced in the first week of January 2011. Please note that this competition is only open to UK residents and is not open to employees or associates of Informed Choice Ltd! Comments will be closed at 5pm on Tuesday 1st June 2010.
