What return can investors in the UK stock market realistically expect? Our end-2012 and end-2013 forecasts for the FTSE 100 are 5,300, a drop of around 4% from its current level. We anticipate that weak economic growth at home and a partial break-up of EMU will weigh on UK equities during this period. However, we think average returns over a longer time horizon are likely to be much healthier.
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