Eight out of ten IFAs reckon the UK stockmarket will be at a higher level in six months time ac...
Eight out of ten IFAs reckon the UK stockmarket will be at a higher level in six months time according to a JPMorgan Fleming Asset Management survey, which involved 88 advisors.
This confidence was mirrored, although to a lesser extent, by private investors. The JPM confidence index increased for the fifth consecutive month in January from a low of 42 in August 2001 to 83. The survey comprises of a randomly selected sample of 500 private investors.
The survey revealed private investors expecting the UK Stock Market to be higher in six months time has risen from 30% to 39% in January against 29% who were negative about prospects.
Peter Brewster, Head of Marketing Research at JPMorgan Fleming Asset Management, commented: "A lot of these investors see global economies recovering in 2002 helped by the big reductions in interest rates and believe this should in turn help UK share prices. Many also point out that stockmarkets generally have been low for some time now and think that they are bound to pick up in the near future."
"There is certainly strong evidence around that the US economy is in the process of picking up and this should have a knock-on effect on other global markets should it continue," added Brewster.
It remains to be seen however, whether February can maintain this upsurge in confidence in light of the recent doubts raised over accounting practices since the collapse of Enron. US group Tyco is the latest corporate giant to be hauled over the coals for dubious accounting practices.
To worsen matters February has already witnessed Microsoft chairman Bill Gates admit that a dramatic improvement for computer-related companies or the US economy is most unlikely in 2002.
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