The future for Oil and the question of value in the FTSE 100 and FTSE 250 where the specialist subjects for David Buik, Senior Market Commentator for Panmure Gordon, when he joined Zak Mir and Alan Green on the Tip TV Finance Show.
Key Points:
Buik believed that the oil situation is much more of a political problem than an economic one.
Saudi Arabia have played a gambling game in the hope of eliminating US shale, according to Buik, which he expressed has failed and now Saudi Arabia faces problems in the form of both trade and balance of payments deficits.
Meanwhile, he noted that the world still needs oil, and thus it is unlikely to go to $20 a barrel.
Buik argued that sentiment is playing a significant part in the Santa rally prospect, with fund managers having large amounts of money at the end of the year which needs to be invested. Thus the FTSE 100 is likely to see some upside, with 6450 being outlined by Buik.
Stepping away from oil, miners and banks, he concluded that there is still some value left in the FTSE 100, and also in the FTSE 250.