The FTSE 100 broke through the 6,000 barrier last month for the first time in five years and has stayed hovering just above this level ever since.
Market watchers have said that this is evidence of a strong economy, with many predicting that these results will continue. The increase in the FTSE 100 was helped by strong postings from UK insurers.
Legal & General announced that total profit for 2005 was up by 43% to £1.09 billion, and Prudential, which received a takeover bid from Aviva, showed strong growth with profits up 33% for the year to £1.71 billion. This will come as good news to pensions trustees, but it is estimated that the index would have to rise by around 50% to wipe out the deficits that many FTSE 100 final salary pension schemes face.
Our view
All is happy in the World of stocks and shares again - but remember our golden rule - do not be greedy - buy low - sell high!
When you see headline figures such as "Stockmarket hits new high" - do you think this is a good time to invest or have you already 'missed the boat?'