So the Christmas presents from the markets is the FTSE hitting 6000 for the first time since the Financial crash of 2008. The FTSE is well above most predictions for 2010, including ours here at C@W. Keen City analysts are saying it is quite over-bought so the first month or two of next year may prove to be a little challenging.
But it is good news, the markets forsee the future and so it likely that they are suggesting 2011 is going to be better than 2010.
2 comments:
"the markets forsee the future"
Oh please, that's so 2007!
Markets forsee nothing. They sometimes reflect an overall reality more clearly than economists and managers though.
The reality is that rising inflation (which is often higher than reported indices) means cash deposits and bonds are losing value. They are guaranteed by governments which are looking less financially secure.
Most other asset markets are looking peeky or are deflating bubbles.
7,500 by Y/E 2011 is my bet.
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