Editorial Contributor
Alpesh Patel Alpesh Patel is the author of 16 investment books, runs his own FSA regulated asset management firm from London, formerly presented his own show on Bloomberg TV for 3 years and has had over 200 columns published in the Financial Times. He provides free online trading education on www.alpeshpatel.com
Patel on Markets My favoured Spread bets for 2013 So, in my inaugural submission to Spreadbet Magazine, if I had to risk my reputation on certain 2013 bets – which would they be and why? FTSE 100 I see the FTSE hitting its 2007 peaks this year. That would place it close to its all time highs last around 6900 last seen during the dot-com era. So to my mind, we are looking at least to another 10-15% rise in 2013. This is partly due to momentum with the index looking good on the charts. The other support is the valuation of the Index, where on an earnings basis it is certainly not over-extended and there is ample potential additional support from a wholesale capital reallocation from bonds.
It sounds quite an incredible journey to have all time highs in the middle of periods of recession doesn’t it? But the companies which make up the FTSE 100 are continuing to make due to the heavy exposure to overseas growth regions of the world. Additionally, with sharp cost cutting, margins are holding up. Whatever the reason, the FTSE 100 has risen 50% since the nadirs in 2009 at the bottom of the credit crunch. Why didn’t we buy then we cry? Because we were too scared....
52 | www.financial-spread-betting.com | February 2013