The Pound has risen to a five month high against the Dollar, our derided ONS has published fantastic growth figures. All seems to be improving in the UK economy once again. Even the Prime Minister has remembered to go on a trip with business executives to try and help UK business.
This is all good news, in fact, good enough to say there will be no double dip this year. Now of course, I have been saying this all along, but with a caveat. I thought more QE would be needed to help the economy through, now it looks like this will not be needed again this year. Next year may be different as the cuts hit. but if the cuts continue to hit totally unproductive parts of the economy, like speed camera's, then maybe not.
Better news then for share prices. I resisted the urge to sell off in the July panic. Now it is quite likely that the FTSE below 5000 was the low for the year. In fact, it is quite possible the FTSE will re-test the high's of 5800 or even touch 6000 at some point this year. The death cross (where the green line cross the red line below) of July looks to have been negotiated and the uptrend can be resumed.
PS If you have never watched that Seinfeld 'Double-Dip' episode then you should, its very funny.