continued from page 1 The year-end index levels should be around or slightly above the current le...
continued from page 1
The year-end index levels should be around or slightly above the current levels, according to Justin Chillingworth, deputy chief investment officer at Rathbones.
He said: 'Our overall view is cautious as there is a fair degree of bad news on the earnings front from the US and Europe.
'The market has been oversold so there could be a short, sharp bounce in the next few weeks but this will just be a rally in a bear market. We would expect a possible sustained rally in first quarter next year.'
Expectations of a V-shaped recovery in the US have now been modified to U-shaped, which has led to an adjustment of earnings expectations, said Tim Rees, director UK Equities at Clerical Medical.
He added: 'I don't think this adjustment has gone the full course and there is a risk of short-term weakness.'
Other fund managers report similar feelings on the market and express difficulty in predicting year-end figures. Graham Ashby, director UK equities at Deutsche Asset Management, is positive and can conceive the index returning to 6,300.
Richard Prew, head of UK retail products at Henderson Global Investors, believes that the index will end the year at higher levels than at the moment but comfortably under the 6,000 mark.
An ambitious objective
'Something completely new'
'Illusion of control'
Reasons to be cheerful
Total investment reaches £9m