Harris: Oversold FTSE could be 20% higher by 2011

Henderson head of multi-manager Mark Harris has labelled current markets "deeply oversold", believing the FTSE 100 could be upwards of 15-20% higher by next year.

Harris, who has used futures and put options to offer downside protection through the market falls over the past few months, says yesterday's close of 4,823 should be near the bottom of the current decline. "As long as we do not see a double-dip, which we do not believe will be the case, current valuations appear very cheap," Harris says. "The yield on the UK equities is around that on gilts, so those people with long-term liabilities should be looking very closely at equities right now." While Harris expects markets to trade relatively sideways in the coming months, he believes th...