PSigma's Becket: FTSE could rise to 5,800 by year end

PSigma's Tom Becket believes the FTSE 100 could rise 10% by the end of year as European policymakers look set to recapitalise the Continent's highly indebted banks, boosting investor sentiment.

Becket believes the excessive market volatility has thrown up a number of opportunities, and he has been building up his exposure to high yield credit in particular. "We are expecting policymakers will refinance European banks and this will result in the market rallying in Q4, potentially rising 10% and ending the year where it started at the 5,800 mark," said Becket. "The equities which will enjoy a stronger recovery will be the mega caps with a strong brand and proven track record. "High yield credit will produce strong relative returns for the next two years because with default...