SLI's Legget: FTSE will reach 6,900 in 2012

Standard Life Investments' Ed Legget believes the FTSE 100 could soar to 6,900 by January 2012 as the index is driven by a shift in sentiment away from bonds towards equities.

Legget, who manages SLI’s £264m UK Equity Unconstrained fund, correctly predicted this time last year the index would rally to as high 6,000 by January 2011. The manager adds he is optimistic the recovery in the global economy will continue. “Personally I think you will see a higher total return, in capital growth and dividends than you did last year,” says Legget. “There is still plenty of earnings growth coming through and there has definitely been a shift in investment sentiment away from bonds and I think some of that money will find its way into the stock market. “People’s vi...