THANKS to the encouraging Pfizer vaccine news, Goldman Sachs predicts stocks in London will continue to recover ground over the next year or so.
According to the American investment bank and financial services company, they predict that the FTSE 100 will reach 7200 points by the end of next year, which means it could be 13 percent higher than on Wednesday, November 11.
“Our economists expect growth to show a marked acceleration from the end of 1Q as lockdowns ease and populations start to be vaccinated; European and global growth next year should be close to 6 percent.
And on the London market specifically, they believe it will benefit from a rotation into ‘value’ stocks (where the FTSE is relatively overweight), away from ‘growth’ stocks such as tech firms, which are struggling.
“FTSE 100 has underperformed European equities by about 15 percent YTD, dragged down by its exposure to commodity prices and the underperformance of Value for most of the year.
“However, we see the improved macro and commodities environment as supportive going forward, and forecast FTSE 100 to reach 7200 by the end of 2021.”
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