This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. Find out more here.
X
MM+Cover+small+181214

PBR pessimism could lift the stockmarket in 2010

  • Print
  • Comment

Fidelity International head of UK retail sales Peter Hicks says the Government’s economic pessimism in the pre-Budget report could boost the stockmarket in 2010.

Chancellor Alistair Darling said the UK economy will have contracted by 4.75 per cent by the end of the year. He conc- eded that the economy will have shrunk by more than 1 per cent over the 3.5 per cent he originally predicted in April’s Budget. He said GDP would resume growth in 2010, increasing by between 1 and 1.5 per cent over the year and continue at 3.5 per cent in 2011 and 2012. GDP is currently at -0.3 per cent.

Hicks says: “As we come out of recession and the economy grows by even 1 per cent, the level of debt relative to the size of the economy will come down.

“People are underestimating economic recovery and finances are probably in a better shape than a lot think, which will be good for the stockmarket bec-ause one of the reasons it did so well from March is that not many trusted the rally.

“You would not be surprised if the Chancellor has been deliberately a bit pessimistic and figures in April are better. It could be good for the stockmarket if expectations are dampened.”

 

  • Print
  • Comment

Daily Email Updates
If you enjoyed this article, sign up to receive the latest news and analysis from Money Marketing.

The Money Marketing CPD Centre
Build your annual CPD - you can log and plan your CPD hours for free with The Money Marketing CPD Centre.

Money Marketing Awards 2015
Put your firm forward as the leading practitioner in your field. Adviser and Advertising categories are open to entries - Enter Now.

Have your sayEdit my profile/screen name

You must sign in to make a comment

AXA Wealth

Is there a growing need for financial advice


Fund Data

Editor's Pick



Poll

Will providers be forced to pay out compensation over annuity misselling?

Job of the week

Latest jobs

View all jobs

Most recent comments

View more comments