Liquidity driving UK bull market

The FTSE 100 could reach 10,000 over the next five years as the final liquidity-driven phase of the equity bull market runs its course, according to Michael Hughes, head of Baring Asset Management's UK investment management team. Hughes said this final bull market phase, which began in 1999, is characterised by the emergence of money flows as the dominant force affecting markets. He has also identified three previous stages that date back to 1981, when he believes the bull market really began. Stage I saw inflation lowered, stage II saw the equity risk premium lowering as corporate restru...