Stock market predictions and tips for 2011

Stock markets were kind to investors in 2010. With little more than a week left, the FTSE 100 is at around 5950 and closing in on 6000 points. Breaking that threshold would represent a rise, from 5412.88, of 10.8%. But it was all about the second half of the year, with the index rallying from a year low of 4805 in early July. That recovery represents a rise of 22%.

The Footsie was not alone in delivering returns - most of the world's stock markets, after wobbles in January and April-May, had a good 2010. For instance, the FTSE Emerging Markets index [FT chart] is up 12.5% on a year ago and Russia's RTS index is 22% higher.

Even the long-term laggard, Japan, didn't do too badly for British investors. The Nikkei is down slightly on the start of the year, but some shrewd stock-picking by UK fund managers meant the Japanese fund sector delivered an average return of 14%.

These decent returns have surprised many investors, and come after a gain of 22% in 2009 for the Footsie. Add in income yield of around 3% for each of those years and the profits look even healthier.

It is a stark contrast to a year ago, when the UK economic recovery was far from certain. At that time, the first major warning signs about unmanageable government debts were emerging. Read More... For the latest updates PRESS CTR + D or visit Stock Market news Today

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