The FTSE jumped nearly 3% yesterday and stands near the 4400 level, going over that would signal at least a short term-up trend. Which would be nice.I am in the camp that we may see a big dip in the markets come September and conversations in the City suggest I am in the majority with this view. On the other hand, the 'Herd' is generally wrong on both the upside and the downside. Here are 5 reasons things may actually be at the bottom:
1) Goldmans makes a stonking profit, as does Intel. Big US corporates showing signs of life is a good thing for their economy and Anglo-Saxon economies as a whole.
2) The Gold price has been very stable, at around $930, for sometime now. Also gold buying pressure is slowly dropping off, which suggests less fear about global conditions.
3) The papers are full of the Banks making too much money, yes it is true, but also this means they will have better capital positions to return to health.
4) Land Securities, a major UK property player, is about to start making moves in the UK commercial property sector again. For the first time in 2 years, another sign of bottoming out.
5) Chinese growth is rebounding and their dodgy figures will show 8% growth this year. Together with US and Indian growth, this give the world hope that there will be large export markets to target.
