Tuesday, 3 January 2012

New Years Predictions 2012...

I've had a crack at the C@W New Years predictions a couple of years running now. 2011 wasn't a good one for me, only 2/5, but I'm aiming for a perfect 5 this time and will definately keep my money where my mouth is on at least BP!

1) FTSE 100 will trade in a range of 4,750 to 6,500 all year. Selling long dated put options - although very risky - could be a good investment strategy to take advantage of all the fear about.

2) The USA outgrows Europe and as a result the EUR/USD pair falls below 1.20 and ends the year there.

3) BP climbs back to 600p a share.

4) India choose the Typhoon over the Rafale, boost for BAE shares.

5) UK deficit starts to fall and economy grows 1.5% as Olympics flatter figures and Coalition begins sneaky Keynsian infrastructure stimulus (most funded via bank lending, PFI and foriegn direct investment).

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