Wednesday, Jun 17, 2009
One day, we will all be cursing new Labour...
Telegraph: 'Labour governments are bad for the stock market'
''The FTSE 100 index stood at 4,445 on May 1st 1997 and after 12 and a bit years, at the beginning of this week, it had moved fractionally down to 4,351. During this same time, inflation, as measured by the Consumer Price Index (CPI) has reduced the value of money by 23pc. ''
Posted by hpwatcher @ 09:27 PM (576 views) Add Comment
5 Comments
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1. shipbuilder said...
Maybe one day we will all understand the uncomfortable truth that the alternative is just the other side of the same coin and that the coin needs replacing.
2. enuii said...
You could swap the word 'money' in the quote for 'a pension' and it would ring almost true except that 23pc is unfortunately too small. Yet at the same time the only thing that rocketed was the price of a house and the mortgage salary multiple required to buy one. Hardly surprising that the two are intrinsically yet inversely liked.
3. Robh said...
I wonder if its 'all shares', or particularly FTSE 100 company shares
Should pension funds invest so much in shares? Perhaps they should buy things like oil and minerals
4. inbreda said...
and there's the truth - the value of money has decreased by 23pc. Likewise the value of a debt in 1997 is now 23pc lower - hence why owning a property is good - if you rent, your rent will have gone up 23pc whereas mortgage payments will not have gone up. The value of your debt is reduced, and the value of your asset is increased.
Essentially, buying a house shows why paper currency is useless. Gordon or gold?
5. Orcusmaximus said...
@shipbuilder - your comment indicates that you didn't actually read the article.
It states that stockmarkets go down under Labour governments, and up under Conservative governments. How you can state that the Conservatives are the same as Labour in this context is a bit bemusing.