Wed, 18th Sep 2013
Yesterday, analysts at Citigroup said that they believed that the FTSE 100 could hit 8,000 by the end of the year, however some other experts disagree.
Citibank's analysts believe that over the next year, the FTSE 100 could increase by 22 percent, reaching a value far higher than the 6,930 that it hit at the end of 1999, during the height of the dot-com boom.
Other banks have given bullish predictions, but none so high as the one predicted by Citibank. Goldman Sachs, for example, has said that it expects to see the FTSE 100 reach 7,200 by the end of next year.
The difficulties which have been weighing the FTSE down over the last few months have mostly come to an end. The crisis in Europe appears to be over and the economy is generally looking far healthier than it did a year ago. As the economy in the USA and UK continues to improve, analysts agree that we can expect to see shares continue to increase.
However, not all investors believe that the FTSE can hit 8,000 in such a short time. Prominent fund manager Neil Woodford believes that the stock market will see a slow-down over the next few months. One of Woodford's concerns is the U.S. Federal Reserve's quantitative easing program. If the Fed decides to end that program at any time in the next few months then this would push investors away from stocks and encourage them to invest in bonds instead.