Saturday, Jan 02, 2010
Fake footsie rebound
Telegraph: Developing nations emerge from shadows as sun sets on the West
FTSE100 rebound seen as a sign of recovery despite being 20% lower than 2000. However, this article points out that this is due in part to large international mining companies which are listed in the UK ("for now").
Posted by stillthinking @ 07:47 PM (533 views) Add Comment
2 Comments
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1. sneaker said...
The Wall of Worry maybe.
Remember that all through the 90's bull market, people were calling it a fake rebound.
The best fake was the rebound out of 1998's LTCM crisis. It looked fake all the way to the top in 2000. A genuine fake all-time high lol.
2. tenyearstogetmymoneyback said...
Interesting article.
Amidst all the details of falling share prices and reserves what it doesn't mention is asset prices.
Joe Public thinks that because his house (on a 90% mortgage mortgage funded by the
developing world) has more than doubled in price over the last decade everything is Hunky Dory
and he needn't worry about things like pension funds.
Interesting figure in the article about Japan's reserves
"As a result, the big-four emerging markets, known as the BRICS, now hold no less than 42pc of the world's total reserves.
The G7 countries, in contrast, hold only 17pc. Take away Japan, the only substantive creditor nation among that group, and
the "club" of advanced countries – including the US, UK and France – holds only 4pc of the world's reserves in their respective
central banks. "
People keep predicting that we will have a Japanese style lost decade. We might not be that lucky.
A figure often quoted is "The National Debt". Personally I think it is far more important to know who it is owed to.
IMHO a National Debt which is contained within the country is entirely different to owing it to other countries.