Will Santa bring 6000 to the FTSE 100?

Well we are all still here then! That’s the problem with predictions, most turn out to be way off the mark. It’s hard enough to guess what is going to happen tomorrow, never mind the end of the world arriving in 2000 years time.

As we are now likely to see the end of the year, my mind has turned to speculating at what level the FTSE 100 index will end 2012. I have talked about “The Santa Rally” in a previous blog, so I won’t repeat myself. But for those of you who need reminding or have not heard of it before, you can read my earlier blog here.

Next week will be short, there will be only two and a half trading days on the London Stock Exchange and probably all eyes will remain on the United States. The politicians are arguing over how much debt is too much. I’m trying to be interested but the outcome will be the same as it was last time. That is they will agree to kick the can further up the road and deal with it later. If there is a settlement before the New Year arrives we will see 6000 points, if there isn’t we won’t.

Last year I asked clients for a guess as to how the FTSE 100 would finish 2012. Steve Donohoe’s guess of 6004 is looking closest at the moment. Anybody wish to guess where it will be this time next year?