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History Points to a New Bull in London

If history is any guide, the FTSE may be in for a bull run as the index seems to have largely ignored the bad news over the past two months, market historian David Schwartz told "Squawk Box Europe."

On July 16, the FTSE retracted into bear-market territory, hitting 5,071, 24 percent below its June 2007 high.

"Since then, we have been getting absolutely horrible news, week after week after week… and guess what, the stock market right now is about 300 points higher," Schwartz said.

Investors may be getting used to the bad news on the economic front, and those waiting for a turnaround in the economy may be missing the best part of a bull run, according to Schwartz.

"The basic truth and the matter is that bull markets start, usually, well before there's an economic turnaround," he said.

But he added: "I don't look for a big, powerful bull run."

"I think that the market will rise in a zigzag fashion for some time… I pencil in a year or more. However the size of the rally I think it's going to be weak compared with other bull markets… the world economic environment is pretty poor and it's going to stay that way for a while."

  • Watch David Schwartz's full interview with CNBC here >>>