Morgan Stanley raises expectations for FTSE 100
Morgan Stanley, the renowned worldwide investment company, has this week increased its target for the FTSE 100 from 5000 to 5800. This is a significant upgrade on the previous year-end forecast and one which was as welcome as it was surprising. When you consider all of the doom and gloom currently associated with the UK stock market and the UK economy perhaps we are now nearing the darkest hour and investors will soon be able to see "light at the end of the tunnel".
While the upgrade from Morgan Stanley is currently a stand-alone operation it is hoped that other investment companies will follow suit and review their own year-end expectations. Whether all of the bad news is currently in the market is open to debate but at this moment in time we need to remember there are concerns about European debt markets, the UK economy, currency issues, inflation and the budget deficit. There are more than enough issues to consider for UK investors without looking elsewhere but perhaps a worst case scenario has already been priced into the market?
Towards the end of the week we saw a partial recovery in the UK stock market but this was more than overshadowed by the reduction in the FTSE 100 over the last couple of weeks.
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