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Ftse Climbing What have I missed? Rate Topic: -----

#1 User is offline   Small Potatoes 

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Posted 08 November 2011 - 09:43 AM

The FTSE/DAX/CAC40 etc all seem to be climbing - any particular reason why? Is it the possibility of Berlusconi going? Everything else news-wise suggests steady or downwards....

(PS - am a relative novice on this so don't shoot me down if I've missed something blatent!!)

#2 User is offline   rantnrave 

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Posted 08 November 2011 - 10:29 AM

Alot of the money that the FTSE represents is made overseas, so it's by no means the reflection of the health of the British economy that it's often assumed to be.

There was an excellent post here a few weeks back about how most scenarios lead to a rise in share prices - Euro collapse looks imminent? Share price rises on hopes for a better future. Euro is given another 48 hours reprieve? Shares rally on the news.

#3 User is offline   leicestersq 

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Posted 08 November 2011 - 10:36 AM

View Postrantnrave, on 08 November 2011 - 10:29 AM, said:

Alot of the money that the FTSE represents is made overseas, so it's by no means the reflection of the health of the British economy that it's often assumed to be.

There was an excellent post here a few weeks back about how most scenarios lead to a rise in share prices - Euro collapse looks imminent? Share price rises on hopes for a better future. Euro is given another 48 hours reprieve? Shares rally on the news.



If they print to try and get out of the mess, debts could be smashed to pieces by the resulting inflation, as can the value of cash. In such a case it would be a good idea to hold real assets, such as gold and part ownership in companies via shares.

If they dont print, money may cease to have value anyway. The money you have in banks could disappear through deflation, and stolen if you have it in cash. Shares seems like a reasonable bet.

#4 User is offline   Democorruptcy 

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Posted 08 November 2011 - 10:39 AM

Could part of the rise in the markets recently be money being sent from troubled Euro countries?

They keep saying if Greece exits the Euro then the Drachma will return but be 50% devalued against the Euro.

So if you were in Greece (or Italy) now and really worried about your country exiting the Euro what would you do?

Surely buying shares on the FTSE or DOW is a reasonable idea? You swap the money from Euros to sterling or dollars and buy shares.

If your country doesn't exit the Euro the markets should rise, if everything turns out hunky dory you swap back and the market rise might cover any rise in the Euro so you are level.

If your country does exit the Euro the markets will probably fall. But a short term 10%, 20% up to 49% drop in the markets is better than a 50% Drachma devaluation. The shares could then even recover. Then you have capital gain and currency appreciation if you swap to the Drachma (or Lira)
Democorruptcy
If you say "Democorruptcy" quickly, it sounds a bit like "Democracy". In a "Democracy" people vote for politicians who represent their interests. In the UK's "Democorruptcy" people can only vote for expense fiddling thieving MPs who are in the hip pocket of big business and the finance sector.

Governbankment
A "Governbankment" is a Government that has no line between itself and it's banks. The UK's Governbankment does policies to enrich bankers at the expense of the public. The more money people are encouraged to borrow, the more money bankers make.

The Funding for Lending Scheme (FLS) is stealing from savers to make them pay for crimes by bankers. Via lower interest on savings, all the bank fines for PPI, LIBOR and interest rates swaps are now being paid by savers so that bankers can keep pocketing bonuses.

"We need to make a really big change: from an economy built on debt to an economy built on savings" - David Camoron Jan 2009
"Printing money is the last resort of desperate governments when all other policies have failed" - George Osborne Jan 2009
- So what do Camoron & Osborne do? Print money and leave interest rates at 0.5% when inflation is over 5%

If it is asserted that civilization is a real advance in the condition of man -- and I think that it is, though only the wise improve their advantages -- it must be shown that it has produced better dwellings without making them more costly; and the cost of a thing is the amount of what I will call life which is required to be exchanged for it, immediately or in the long run.
http://classiclit.ab...en-Part-2_4.htm

I want to tell you my secret now.... I see debt people

#5 User is offline   Voice of Reason 

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Posted 08 November 2011 - 10:44 AM

View Postleicestersq, on 08 November 2011 - 10:36 AM, said:

If they print to try and get out of the mess, debts could be smashed to pieces by the resulting inflation, as can the value of cash. In such a case it would be a good idea to hold real assets, such as gold and part ownership in companies via shares.

If they dont print, money may cease to have value anyway. The money you have in banks could disappear through deflation, and stolen if you have it in cash. Shares seems like a reasonable bet.


+1

I actually think that the rally today has more to do with the hope/expectation that Berlusconi will be gotten rid of somehow and the belief that this makes Italy less of a basket case.
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#6 User is offline   rantnrave 

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Posted 08 November 2011 - 10:56 AM

I have noticed recently that the fundamentals which drive the market down are more than countered by straw-clutching 48 hour type solutions.

#7 User is online   TheCountOfNowhere 

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Posted 08 November 2011 - 11:08 AM

The FTSE makes no sense...it's like it's controlled by someone who knows something we dont !!!!

I like to think of it like betting the horses..only the horses are less corrupt.

#8 User is online   hotairmail 

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Posted 08 November 2011 - 12:00 PM

View PostTheCountOfNowhere, on 08 November 2011 - 11:08 AM, said:

The FTSE makes no sense...it's like it's controlled by someone who knows something we dont !!!!

I like to think of it like betting the horses..only the horses are less corrupt.


Are you sure about that?





#9 User is offline   Democorruptcy 

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Posted 08 November 2011 - 12:02 PM

View PostTheCountOfNowhere, on 08 November 2011 - 11:08 AM, said:

The FTSE makes no sense...it's like it's controlled by someone who knows something we dont !!!!

I like to think of it like betting the horses..only the horses are less corrupt.


It's the jockeys you have to worry about. Some of the horses must get home with neck ache, it's been pulled so hard. It must be very confusing for the horses all that stop, stop, go, stop, stop.
Democorruptcy
If you say "Democorruptcy" quickly, it sounds a bit like "Democracy". In a "Democracy" people vote for politicians who represent their interests. In the UK's "Democorruptcy" people can only vote for expense fiddling thieving MPs who are in the hip pocket of big business and the finance sector.

Governbankment
A "Governbankment" is a Government that has no line between itself and it's banks. The UK's Governbankment does policies to enrich bankers at the expense of the public. The more money people are encouraged to borrow, the more money bankers make.

The Funding for Lending Scheme (FLS) is stealing from savers to make them pay for crimes by bankers. Via lower interest on savings, all the bank fines for PPI, LIBOR and interest rates swaps are now being paid by savers so that bankers can keep pocketing bonuses.

"We need to make a really big change: from an economy built on debt to an economy built on savings" - David Camoron Jan 2009
"Printing money is the last resort of desperate governments when all other policies have failed" - George Osborne Jan 2009
- So what do Camoron & Osborne do? Print money and leave interest rates at 0.5% when inflation is over 5%

If it is asserted that civilization is a real advance in the condition of man -- and I think that it is, though only the wise improve their advantages -- it must be shown that it has produced better dwellings without making them more costly; and the cost of a thing is the amount of what I will call life which is required to be exchanged for it, immediately or in the long run.
http://classiclit.ab...en-Part-2_4.htm

I want to tell you my secret now.... I see debt people

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