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What Does The F T S E Think It's Doing?


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#1 Ologhai Jones

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Posted 14 October 2011 - 01:44 PM

Is this a good time to 'take profits' (or minimise losses) before the world wakes up again and we have another plunge?

#2 Executive Sadman

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Posted 14 October 2011 - 01:49 PM

Plinty plinty. That 100bns gotta go somewhere, and god knows it wont actually go towards infrastructure building.

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#3 Voice of Reason

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Posted 14 October 2011 - 01:51 PM

Mods delete this thread please.

We only have FTSE threads on HPC when the market is down 100+ points.
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#4 rantnrave

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Posted 14 October 2011 - 02:03 PM

European banks get downgraded, unemployment numbers get worse and GDP gets downgraded - FTSE falls 0.5%
Someone in America buys a bagel - FTSE goes up 1%

#5 plummet expert

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Posted 14 October 2011 - 02:17 PM

Mods delete this thread please.

We only have FTSE threads on HPC when the market is down 100+ points.

The markets have only stabilised because of the idea that a vast mountain of money is about to turn up in Europe and save all the people, the banks and govts from ruin. The only question left is, where is this money coming from? Govts plainly have none as they would not otherwise be borrowing every month like there was no tomorrow. Banks plainly have none since they are being highlighted as undercapitalised and stuffed with bad loans to other govts like, Greece, Portgual, Spain..even Italy. The IMF have admitted they are running short of funds.
The Chinese are beginning to realise they have lost the power to control their mirage of super growth. It is all a lie and well on the way to falling down.
SO JUST WHERE IS THIS MASSIVE EURO BAIL OUT FUND TO COME FROM? ANYONE KNOW? ............................Hmmmmm PRINT + DISTRIBUTE = INFLATION

#6 Reck B

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Posted 14 October 2011 - 02:23 PM

The markets have only stabilised because of the idea that a vast mountain of money is about to turn up in Europe and save all the people, the banks and govts from ruin. The only question left is, where is this money coming from? Govts plainly have none as they would not otherwise be borrowing every month like there was no tomorrow. Banks plainly have none since they are being highlighted as undercapitalised and stuffed with bad loans to other govts like, Greece, Portgual, Spain..even Italy. The IMF have admitted they are running short of funds.
The Chinese are beginning to realise they have lost the power to control their mirage of super growth. It is all a lie and well on the way to falling down.
SO JUST WHERE IS THIS MASSIVE EURO BAIL OUT FUND TO COME FROM? ANYONE KNOW? ............................Hmmmmm PRINT + DISTRIBUTE = INFLATION



I KNOW! PLEASE ! ME SIR !

*puts hand up*

It's coming from YOUR bank account.

..and your children's

..and their children's

by which time, EVERY SINGLE PERSON making these rather silly decisions will have DIED OF OLD AGE and it won't be their problem.
Help to Buy, as described by Albert Edwards of French bank Societe Generale;

"I believe it truly is a moronic policy that stands head and shoulders above most of the stupid economic policies I have seen implemented during my 30 years in this business."


An nescis, mi fili, quantilla prudentia mundus regatur.

#7 yellerkat

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Posted 14 October 2011 - 02:36 PM

Is this a good time to 'take profits' (or minimise losses) before the world wakes up again and we have another plunge?


No, we're back to this paradigm:

Weak data - Fed eases, stocks rally.
Strong data - Strong economy, stocks rally.
Consensus data - Lower volatility, stocks rally.
Bank loses US$ 8 billion - Bad news all out of the way, stocks rally.
Oil price up - Good for energy producers, stocks rally.
Oil price down - Good for consumers, stocks rally.
US$ down - Good for exporters, stocks rally.
US$ up - Lower inflation, stocks rally.
Inflation up - Good for commodities and asset prices, stocks rally.
Inflation down - Fed eases, stocks rally.
Climate change - Soft commodities up, stocks rally.
World ends - Good for disaster recovery companies, stocks rally. (from prudent bear)


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#8 Yosser Hughes

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Posted 14 October 2011 - 02:45 PM

The working man gets home, watches the BBC news, FTSE up. 'Nothing to worry about'

The FTSE figure on the news is some kind of be all benchmark of the financial state of the UK/World to many people I know.

#9 swissy_fit

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Posted 14 October 2011 - 03:10 PM

Last time there was QE it leaked out into the stockmarket. You didn't think banks were going to lend it for anything constructive, did you?
This time is no different, and also there is anticipation of massive European QE to save the PIIGS.
If you want to know what the next political move will be, ask yourself what will suit the banks, and behold, the answer will come to you.

The Credit Crunch :
The logical financial outcome is deflation. The logical political outcome is inflation. (Thanks to Injin 21st Sept 2008)

#10 EvilEdna

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Posted 14 October 2011 - 03:19 PM

The markets have only stabilised because of the idea that a vast mountain of money is about to turn up in Europe and save all the people, the banks and govts from ruin. The only question left is, where is this money coming from? Govts plainly have none as they would not otherwise be borrowing every month like there was no tomorrow. Banks plainly have none since they are being highlighted as undercapitalised and stuffed with bad loans to other govts like, Greece, Portgual, Spain..even Italy. The IMF have admitted they are running short of funds.
The Chinese are beginning to realise they have lost the power to control their mirage of super growth. It is all a lie and well on the way to falling down.
SO JUST WHERE IS THIS MASSIVE EURO BAIL OUT FUND TO COME FROM? ANYONE KNOW? ............................Hmmmmm PRINT + DISTRIBUTE = INFLATION


Okay, if that's the case, how do you explain the strength of the Euro during the last fortnight?
"Ireland stands as a shining example of the art of the possible in long-term economic policymaking, and that is why I am in Dublin: to listen and to learn."

George Osborne 2006

#11 cashinmattress

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Posted 14 October 2011 - 03:22 PM

Why does this happen? Let's get the ball rolling then...

link

98 of FTSE 100 companies use tax havens

New research by ActionAid uncovers 8,492 overseas subsidiary companies.

Every single company on the London Stock Exchange, bar two, uses round-the-world tax havens, often costing developing countries far more than they receive annually in aid, a report by ActionAid has revealed.

Ninety-eight per cent of the country's biggest businesses are afforded widespread financial secrecy and tax levies by holding jurisdictions in 8,492 companies outside of the UK. This makes up a quarter of the FTSE 100's total 34,000 subsidiaries.

The four big banks (Barclays, HSBC, Lloyds and RBS) alone have 1,649 firms located in tax havens.

ActionAid's research is based on previously undisclosed data. FTSE companies are required by law to disclosed information on their subsidiary businesses, however, ActionAid's analysis found that over half "were not complying with this legal obligation". The child sponsorship chairty submitted complaints to Companies House, thereby forcing Stock Exchange businesses to re-file their annual returns.

A graphic map of the FTSE 100 tax havens can be found on the ActionAid website, here.



#12 bobthe~

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Posted 14 October 2011 - 03:31 PM

Okay, if that's the case, how do you explain the strength of the Euro during the last fortnight?

I would guess, the bailout being passed is a sign that things aren't as desperate as the market thought.

That, and randomness.
If the good times lasted forever, then they wouldn't be called "the good times", they would just be called "the times".

#13 EvilEdna

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Posted 14 October 2011 - 03:36 PM

I would guess, the bailout being passed is a sign that things aren't as desperate as the market thought.

That, and randomness.


I think the currency market is expecting that the Euro rescue fund won't be funny money but instead Euro bonds backed by all the Euro nations, or something similar. Otherwise surely the Euro would plummet at the prospect of massive printing?
"Ireland stands as a shining example of the art of the possible in long-term economic policymaking, and that is why I am in Dublin: to listen and to learn."

George Osborne 2006

#14 northwestsmith2

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Posted 14 October 2011 - 03:39 PM

Mods delete this thread please.

We only have FTSE threads on HPC when the market is down 100+ points.


I'ts very volatile at the moment, as I and others have pointed out. This is a bad thing for FTSE growth.

During the debt times the FTSE never strayed out of 2.5% moves, in other words it was very very stable and it went up
but that's not the point, it was stable in the direction it moved.

Now It has gone 10% up from the low in 10 days, In July it was over 6000 and fell from that.

The volatility is a bad thing for investors, for gamblers it's just about ok, but still not good.

That's around 350% gains per annum at it's current rate.

Edited by northwestsmith2, 14 October 2011 - 03:42 PM.


#15 The Masked Tulip

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Posted 14 October 2011 - 03:49 PM

That's around 350% gains per annum at it's current rate.




Therein lies the rub.
The success or failure of your deeds does not add up to the sum of your life. Your spirit cannot be weighed. Judge yourself by the intention of your actions and by the strength you faced the challenges that have stood in your way.

The people closest to you have been trying to tell you that you have made a difference. That you did change things for the better. The Universe is vast and we are so small. There is really only one thing that we can ever truly control - whether we are good or evil.


The political triumph of the American Right has been to advance relentlessly the economic interests of the country's richest people, while emphasising a swath of moral, social and foreign policy issues that motivate and certainly distract middle-class and poor voters.




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