The FTSE 100 could rebound up to the 5,000 mark by the end of next year, predicts Mike Lenhoff, chief strategist at investment manager Brewin Dolphin.
Despite overcalling the FTSE 100 closing level for the end of 2008 - estimating 7,200 - Lenhoff believes there is a strong possibility equity markets could end 2009 on a more upbeat note. Lenhoff cites three reasons as the basis for last year's forecast. He predicted interest rates would be slashed earlier in the year but this expectation was quashed by the rise in commodity prices. Secondly, he anticipated an economic recovery and thirdly, he felt there would be attractive valuations underpinned by an improvement in earnings expectations. Looking forward, Lenhoff again points to a trio o...
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