Sunday, 2 January 2011
2011 New Year Predictions
1. Politics - Labour will establish a big lead in the polls and Ed Milliband will be sen to be doing a good job by the end of the year.
2. Economics - UK Interest rates will rise more slowly than people expect, with rates likely to be at 1.25% by the end of the year.
3. FTSE - After a massive shock when Spain/Portgual force the European nations into a quasi debt union, the stock market will recover to over 6000 and will end the year about 5% up at 6350.
4. Share Sectors - Mining and Oil stocks will continue their boom and defensive shares will fall out of play as dividends fail to match inflation.
5. Banking - The Government banking commission will cause a panic in the Big City banks when it recommends further break-up. However, the Government will not have the political will to enact and the year will end with impasse and uncertainty on this matter.