I've read from a number of commentators who say that the FTSE 100 right now is cheap, the link below is to a Fool article. I don't buy this given that the UK market tends to react to what is going on in the USA. Some may be cheap, depending on your definition of cheap, but they could still fall a long way in reaction to events stateside.

Any thoughts on where this market is going?

http://www.fool.co.uk/news/comment/2005/c050316a.htm

As oil falls S&P FTSE etc will rise
I'd say to 5300 by the summer
then timberrrrr........!

If everything was valued on the fundementals (such as div yield) then we would'nt get booms & busts but the market is driven by emotion/sentiment.

Whilst the footsie is well priced (Not cheap as P/E of 14-15 is average) with good recent growth there are a couple of potential problems.

1) The Dow Joes is looking very very toppy and could start falling big style, this will drag the footsie down.

2) If you believe that a house price crash is going to happen then this will effect consumer spending which will seriously effect company profits. This would also drag down the footsie as future profit growth would fall.

but as always DYOR