Recovery Concerns Fuel Market Rise

Recovery Concerns Fuel Market Rise.

Things are looking up for market investors as the uncertain future for more QE but Federal Reserve boss Bernake's statement of it continuing longer resulted in markets rising quickly yesterday.. FTSE closed up 63.43 (0.95%) at 5,634.36.

The correction seen over the last 2 months looks like its over.

Markets were calmed yesterday by Ben Bernanke report after fears continued over the Fed’s monetary policy.  Once again this showed that the Federal Reserve is the driver of the market.

Our view

It seems a little crazy.  Governments borrowing more and spending more - i.e. more debt than pre-credit crunch, yet investors are bouyed that more money is in the economy, construction companies and banks will benefit and the spin off is inflation fuelled market growth.  We have set our exit point for FTSE 100 at 6,700 for higher risk investors and we are getting closer.