Should we have more faith in fund managers?

Where do we see the FTSE 100 finishing this year?

After falling to about 3,500 during the dark days of March, the overwhelming majority of investors would not have realistically believed the FTSE could bounce back so quickly to the 4,700 level we now have seen. In last week’s edition of Investment Week, two of the top-performing fund managers of 2009 – Henderson New Star’s Stephen Peak and Standard Life Investments’ Edward Legget – both tipped the FTSE to push through the 5,000 barrier by year end. After climbing from about 4,200 a month ago, this was by no means an outlandish estimate. Peak and Legget are obviously not expecting th...