Friday, December 21, 2012

So why are stocks so high? Time for a correction or is this time different?

FTSE will surge above 6,500 next year, say experts

As 2012 draws to a close, fund managers and investment analysts tell FE Trustnet where they think the FTSE 100 will be this time next year. Investors will easily surpass its current levels by this time next year, according to industry experts, with some estimating the index will climb as high as 7,000. At the time of writing, the FTSE 100 index is at 5,966 points. With this in mind fund managers and investment analysts told FE Trustnet that they think this progress will continue over the next 12 months. Though all the experts were light-hearted in their forecasts, they say UK equity markets should perform strongly in 2013, with three of the five saying it will surpass 6,500.

Posted by khards @ 04:12 PM (3115 views)
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11 thoughts on “So why are stocks so high? Time for a correction or is this time different?

  • Where is Flashy? Was he was correct all along?

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  • They simply apply the very long term, historic, average returns for the Ftse100. They fail to point out that we are living through a global depression.

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  • What a load of vested interest tosh. I’ll eat my hat if the FTSE gets anywhere near 6500 this year. I’m still thinking we have at least another year of bouncing between 5500 and 6000. Seems these investors are ignoring fundamentals that the whole EU economies are in deep sh1t.

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  • ontheotherhand says:

    khards, please explain what is an allowable House Price blog posting and what isn’t? I actually don’t mind the economics blogs, but I’m scared of posting one and you call it ‘crap’ and say you are bored of off topic postings.

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  • Not as silly as it sounds when you consider that the FTSE100 is 15% down on it’s 1999 peak.
    It’s basically gone sideways for the last 15 years.

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  • In order to get to 6500 would require almost 10% increase in the current value of equities. This amount of money has to come from somewhere and there has to be confidence such that people want to invest. All this in combination with negating factors such as a skew in the market caused by people who perhaps used to invest, but now are instead drawing their pension. Not only that but there is a whole generation of young people who simply can’t afford to save for a pension or invest because they are saving for houses or paying off debts. So there are a huge number of negating factors which I think means the market is not going very far.

    I could see the market getting a boost because of a knock-on effect from a large QE injection, but history has already shown that QE only gives the market a short term boost. If the BOE was to announce another 200-300bn of QE this year then I could foresee 6500 being hit, but a few months later the market dropping like it has done in the past.

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  • junk.

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  • And all paper currency will worth 25% less than this year, but “Shhhhhhhhhhhhhhh,” say experts.

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  • Money is cheap and there is a lot of cash sloshing around.
    The returns on shares far exceed the returns from a building society account
    QE will support the market because nobody has mentioned pension funds that require good yielding shares to pay pensions, poor pensions payouts means more people on benefit.
    So my guess is we will go to 6500, interest rates will go up next year, house prices will slide in value slowly.
    I am so pleased I ignored the comments on here, so backward thinking, reminds me of an Italian tank!

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  • It’s had a good start to 2013!

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  • It’s certainly had a good start to 2013!

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