EDITOR'S LETTERJohn Stepek
Towards FTSE 12,000?
In 2008, right after Lehman Brothers went bust, Phil Anderson wrote a cover story for MoneyWeek.
Looking back at that issue (number 405, if you want to look it up), our news section was reporting that the world’s central banks had slashed interest rates by 0.5%, in a co-ordinated move to stem the panic, while the personal finance page was all about the demise of Icelandic internet bank Icesave. A bit of a scary time for investors, all told.
But Phil took the long view. He acknowledged that we were in a grim situation, and that property prices would fall for a few years yet. But he also reckoned the upturn would arrive in 2011, and that US stocks could start rising again as early as 2009, but certainly by 2010.
I’ll admit, I was sceptical. Glued to the office Bloomberg terminal, which was spurting out news of the latest profit warning or bankrupt bank, it was easy to worry that we might not have an economy left by 2011, let alone one witnessing the ‘green shoots’ of recovery. But Phil was right.
• Read the full editor’s letter here: Towards FTSE 12,000?