IS THE FTSE 100 RALLY A TRUE REFLECTION OF MARKET VALUES?
HENK POTTS BARCLAYS WEALTH
“The earnings season has given more support than anticipated, largely because firms have cut back. In the short-term we have to be a lot more cautious. But in the long term, if we are going into a period of recovery and companies are leaner and meaner, we are looking at some great opportunities.”
JOSHUA RAYMOND CITY INDEX
“It is difficult to say that the upside momentum is true as the volumes are so low. We could be in for a period of consolidation, but I don’t think that is anything to fear. If there are 100 investors prepared to buy at these prices, then there will be 200 coming in if prices go lower.”
DAVID EVANS BETONMARKETS
“As always with the FTSE 100, it is all about what the US does. I have been quite sceptical about the rally – which has been spectacular – but I think we will start to see it slow and become more staggered. I don’t think we can see another 40 per cent increase over a similar period of time, but it really does depend on market movements across the Atlantic.”