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Investors expect FTSE to rally in 2011

Investors expect FTSE to rally in 2011

Category: Investments

Updated: 05/01/2011
First Published: 05/01/2011

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

The majority of investors are bullish about the prospects of the FTSE 100 in the forthcoming year.

Some 53% of investors think the FTSE will rally in 2011, an increase on the 43% who were bullish at the beginning of 2010, according to research by Barclays Stockbrokers.

Stocks and shares enjoyed something of a mixed year in 2010, although fortunes improved towards the end of the year when the FTSE bumped around the significant 6,000 mark.

Such bullish performance has clearly increased confidence amongst investors for the year ahead, as less than one on five (18%) had a bearish outlook, and said they were not optimistic about prospects in 2011.

However, separate figures have revealed that investors are even more confident in returns from overseas equity markets in 2011 than from the domestic market. Three quarters (76%) of clients believe the best returns will be found overseas.

Whilst one quarter (24%) of respondents believe the UK will deliver the best returns next year, over half of respondents (52%) favour emerging markets, a fifth (18%) back the US, and 6% favour Europe.

"As we kick-off 2011, it is interesting to see that while the majority of Barclays Stockbrokers clients believe that the FTSE will rally during the course of the year, a growing number are even more confident in overseas markets," said Paul Inkster, head of product at Barclays Stockbrokers.

"These results support what we are increasingly hearing from clients regarding their appetite to increase the global diversification within their investment portfolios."

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