Single stock plays are likely to be found more at FTSE 250 level than FTSE 100 given the global tilted FTSE 100 is storming along at around 7200 and pure UK economy plays within it are limited.
John Redwood, chief global strategist at Charles Stanley, is one professional investor who is going against the crowd with his view that economists should ‘cheer up.’
“Many UK economists have been forced to eat their words following incorrect forecasts last year,” he noted. “Predictions of a recession and a slowdown for this winter failed to materialise and instead 2016 ended with new highs for shares, continued house price records and great retail sales. These economists are predicting yet more gloom for 2017 despite evidence to the contrary. We disagree with these forecasts and are optimistic about growth this coming year. Firstly, we believe that the rise in inflation will be limited and incomes will rise. As a result, retail sales will continue to increase, bolstered by the competitive world goods market. This, in turn, will lead to the more pessimistic large companies investing more inwardly to keep up with the buoyant UK consumer.”
“The UK is still the fastest-growing major advanced economy in the world alongside the USA,” Redwood added. “If Trump cuts taxes and spends more as he has promised, the stronger US economy will boost the UK. So let’s hope the forecasters cheer up a bit and start getting their predictions right for a change.”
