That has left many with large quantities of cash. With falling interest rates, however, these cash reserves are not earning a good return. Shares may offer a more attractive investment and so institutional buying may bolster the market. Mergers and acquisitions Slow earnings growth will prompt more companies to join forces to cut costs. Mergers and acquisitions are likely to buoy some stock prices.
PEPs allow investors to save tax when they buy shares.
So a surge in PEP sales will boost share prices. A change in UK tax law is likely to prompt companies to buy back huge amounts of their own shares, which in turn should boost earnings per share. Tough times ahead Barring anymore economic disaster, a stock market crash looks unlikely. Indeed experts believe the UK stock market is likely to rise. That said share prices are unlikely to repeat the explosive growth they have enjoyed in recent years.