View more on these topics

PBR pessimism could lift the stockmarket in 2010

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.”

Recommended

Signature tunes into portfolios

Stockbrokers Rowan Dartington is setting up a stand-alone company offering a managed portfolio service for IFAs. The service, called Signature, will also be available to platform providers and other investment professionals. It will offer access to a whole of market range of funds and a range of different management approaches. Signature managing director Andrew Morris […]

India: too big to ignore?

By Kunal Desai, head of Indian Equities, Neptune  India is officially the world’s fastest-growing major economy and remains firmly on track to become the third-largest economy by 2030, overtaking Japan and Germany. As an accelerating labour force combines with increasing labour productivity, is India getting too big to ignore? Click here for full article   […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com