The FTSE 100 broke through the psychologically-important 5000 level today, before closing at 4990.
The spike in the index has been greeted as positive news by advisers and fund managers but they warn there is a long way to go before investor confidence will fully return.
F&C Asset Management head of strategy Paul Niven says: “This will no doubt receive much attention as headline levels of resistance and perceived key psychologically important levels are breached.”
Simpsons of Brighton principal Neil Thomas says: “Are people excited – really seeing this as good news? I think that 5000 is a nice juicy round number, and psychologically it has a good effect, more for advisers than for clients. We are still a long way off nearly hitting 7000 in late 1999, and clients are still nursing their losses from that.”