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IS THE FTSE 100 RALLY A TRUE REFLECTION OF MARKET VALUES?

<strong>HENK POTTS </strong>BARCLAYS WEALTH<br />&ldquo;The earnings season has given more support than anticipated, largely because firms have cut back. In the short-term we have to be a lot more cautious. But in the long term, if we are going into a period of recovery and companies are leaner and meaner, we are looking at some great opportunities.&rdquo;<br /><strong><br />JOSHUA RAYMOND </strong>CITY INDEX<br />&ldquo;It is difficult to say that the upside momentum is true as the volumes are so low. We could be in for a period of consolidation, but I don&rsquo;t think that is anything to fear. If there are 100 investors prepared to buy at these prices, then there will be 200 coming in if prices go lower.&rdquo;<br /><strong><br />DAVID EVANS </strong>BETONMARKETS<br />&ldquo;As always with the FTSE 100, it is all about what the US does. I have been quite sceptical about the rally &ndash; which has been spectacular &ndash; but I think we will start to see it slow and become more staggered. I don&rsquo;t think we can see another 40 per cent increase over a similar period of time, but it really does depend on market movements across the Atlantic.&rdquo;