The FTSE 100 rose 6.43% or 379.07 points in January, making this the strongest start to a year since 1989.
London's leading share index is on course to record its best January performance since 1998, despite fears the UK economy could fall into a triple-dip recession later this year.
Fidelity Special Situations fund manager Sanjeev Shah has warned investors that equities are at risk of a significant pullback this year as valuations approach multi-year highs.
London's leading share index soared to its highest level since May 2008 in afternoon trading yesterday, breaking through the 6,300 barrier, as the New Year rally continues to gather pace.
An indicator that measures momentum in the FTSE 100 index has shot up to levels last seen in 1997, implying the UK's leading share index is at its most overbought level for 15 years.
The FTSE 100 opened almost 10 points lower this morning, pushing it under 6,190 points, after disappointing trading sessions across the globe overnight.
Nick Paler talks to Cazenove's Robin Minter-Kemp about the challenges and opportunities ahead as he discusses his plans for growing the business in 2013.
The FTSE 100 looks set to break the 6,200 level, the first time since May 2008, continuing the rally that has propelled markets since the beginning of the year.
The yield of the FTSE 100 will rise from 3.07% to 3.37% this year as FTSE 100 companies increase their dividends by an average of 11%, Banc De Binary has claimed.