Financial Times
February 17, 2012
I was uncertain about 2012 stock market prospects when the year began.
A steadily improving US economy had the potential to boost UK shares. But I worried that the eurozone financial crisis could pull our stock market down by a substantial margin.
Seven weeks have now passed and I have become increasingly positive about prospects for the rest of the year.
One clue is the recent resumption of the stock market’s upward trend. After a sharp sell-off in 2011’s third quarter, the FTSE 100 gained 19 per cent in just four months. A well-defined upward trend is now in place. The Footsie must still rise decisively above 6,000 to convince me that the rally has legs. Remember that a similar rally ran out of steam in this area near the start of 2011. Even so, it is a good sign.
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