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Ftse Breaks 5200


Van
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Currently 5225.

Okay, so it's overbought at the moment and due a pullback, but this current run has a lot of life left in it as the US markets consolidate.

Stocks or property? Stocks are advancing, property is falling. Watch the lemmings jump ship.

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Question for you, I don't know the answer so I'm not testing you.

Is it not the case the the footsie 100 has a disproportionate number of Banks, oil companies and the sort of organisations that have been making mega bucks due to debt growth and commodity shortages, not just oil.

If so, does it really signal a good economic situation just because its high. After all, if there was an oil crises it might go up but the economy could collapse. I've said before that financial wealth may be disconnected from standard of living.

Edited by deano
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Question for you,  I don't know the answer so I'm not testing you.

Is it not the case the the footsie 100 has a disproportionate number of Banks, oil companies and the sort of organisations that have been making mega bucks due to debt growth and commodity shortages, not just oil.

If so, does it really signal a good economic situation just because its high.  After all, if there was an oil crises it might go up but the economy could collapse.  I've said before that financial wealth may be disconnected from standard of living.

Deano, Ive profited from B2L and now having largely sold - up I believe sentiment alone will drive the Stock Market hard fuelled by lots of property investors looking for a new home and new investors drawn by the magnate of a steadily increasing FTSE.

Its that simple.

To over - complicate is a waste of time. Sure all kinds of things could cause a SM fall, but its pointless trying to predict. In the end you have to take a risk. For me right now the risk feels about right and I use monthly purchased Unit Trusts to spread my risks.

Its just like setting up in business. There are always more reasons not to do it, but in the end you just go for it.

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Deano, Ive profited from B2L and now having largely sold - up I believe sentiment alone will drive the Stock Market hard fuelled by lots of property investors looking for a new home and new investors drawn by the magnate of a steadily increasing FTSE.

Its that simple.

To over - complicate is a waste of time. Sure all kinds of things could cause a SM fall, but its pointless trying to predict. In the end you have to take a risk. For me right now the risk feels about right and I use monthly purchased Unit Trusts to spread my risks.

Its just like setting up in business. There are always more reasons not to do it, but in the end you just go for it.

DB your wasted, you should set up as an IFA....

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I have been considering the recent rise in the FTSE from a the perspective of how it links with the housing market.

Take the stock market boom of the 1980s. This ended in 1987 dramatically, at which point the housing market suddenly took off and expanded into a bubble. This peaked several years later and then slid.

In the mid-1990s as the recession came to an end, the stock market took off again, more than doubling in 6 years. House prices did nothing special.

In 2000 the stock market peaked and then began falling. The stock exchange was no longer the place to have your money. Money began to move into property and the housing market took off again.

2005, the housing market is passed its peak and everyone knows it. Those with money to invest are again looking for returns and the stock market is providing them. Sentiment will shift and the transfer of funds from property to shares will continue.

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Deano, Ive profited from B2L and now having largely sold - up I believe sentiment alone will drive the Stock Market hard fuelled by lots of property investors looking for a new home and new investors drawn by the magnate of a steadily increasing FTSE.

I think that when the US property boom dies out in maybe a year, US investors will start piling into shares as a alternative which should in turn drive up the FTSE.

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I think that when the US property boom dies out in maybe a year, US investors will start piling into shares as a alternative which should in turn drive up the FTSE.

Exactly what I think people.

And you know what? Dickhead here put £7k in between 1998 and 2003 - I'm now £500 up.

Long may it continue, I was livid when I lost all that money and finally I'm starting to get some of it back.

Here is a poser for you:-

What is the likely effect of the FTSE in the event we don't get the games?

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Investing in the Stock Market, in particular the Footsie would suggest that you are of the opinion that UK companies are going to be making a lot of money in the near future. Given that many over the past few years have struggled to keep themselves in the black on what do you base your prediction of good times ahead for british businesses?.

In my opinion if the economy is screwed, and there is a tightning of lending to business as is currently the case, and we have inflation running higher each month then how could business be looking forward to prosperous times.

Footsie over 5200 I think it hit that in 1998 ?.

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Investing in the Stock Market, in particular the Footsie would suggest that you are of the opinion that UK companies are going to be making a lot of money in the near future. Given that many over the past few years have struggled to keep themselves in the black on what do you base your prediction of good times ahead for british businesses?.

In my opinion if the economy is screwed, and there is a tightning of lending to business as is currently the case, and we have inflation running higher each month then how could business be looking forward to prosperous times.

Footsie over 5200 I think it hit that in 1998 ?.

Laurejon, I'm not FTSE bull, but just to let you know, the FTSE has a disproportionate number of international companies for a national index, BP for example makes only 10% of it's earnings in the UK, this means that it is perfectly feasible for the FTSE to be doing very well whilst the UK economy falls to bits.

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Laurejon, I'm not FTSE bull, but just to let you know, the FTSE has a disproportionate number of international companies for a national index, BP for example makes only 10% of it's earnings in the UK, this means that it is perfectly feasible for the FTSE to be doing very well whilst the UK economy falls to bits.

How many times do I have to say this. The FTSE250 (101 to 351st biggest companies) are less affected by international events yet it is currently at a record high of 7400. It used to be the same as the FTSE100.

To answer Lauerejon's point a huge amount of the stock markets performance is down to SENTIMENT and maybe investors shifting money from property.

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If the economy is heading south, and interest rates are set to rise then a simple savings account would be a good home for the cash.

In the last recession my Grandparents made an absolute killing on their savings with the high interest rates available to term deposits and then made another by investing in BTL property as we came out of the recession.

I think the trick it to keep your capital relatively liquid as you never know when you might need to use it. I would love to be able to do the Gordon Geko from home, but given my first and last attempt involved lastminute.com and psion I think I have had my try.

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Investing in the Stock Market, in particular the Footsie would suggest that you are of the opinion that UK companies are going to be making a lot of money in the near future. Given that many over the past few years have struggled to keep themselves in the black on what do you base your prediction of good times ahead for british businesses?.

In my opinion if the economy is screwed, and there is a tightning of lending to business as is currently the case, and we have inflation running higher each month then how could business be looking forward to prosperous times.

Footsie over 5200 I think it hit that in 1998 ?.

Have to say I agree here. If the HPC gets into gear it is going to cause a recession. Things are bad already - building stocks down, banks talking about bad debts, oil is going to impact everyone's costs and profits as it can't all be passed on. So, okay FTSE enjoying a little bull run at the moment and, as someone else said here, it is driven by sentiment. So even though lots of the FTSE companies derive earnings abroad - if sentiment here turns really bad - FTSE will go back down.

Just watching Bloomberg - Italy - worst June retail figures for 12 years. Holland - economy in worst shape for ... (can't remember - a long time though). Isn't Europe our biggest trading partner. If their economies are all bug*erd, which they seem to be as they are massively inefficient, our trade with them will fall affecting internation earnings. Nice to be able to see into the future, I think selective investing in recession proof companies will pay off at the moment. The index surely will fall back.

Last time round - investing in companies that are in 'recession-proof' sectors of the economy definitely worked.

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on what do you base your prediction of good times ahead for british businesses?.

Previous bubbles have more to do with sentiment than green light fundamentals.

Also Im not all that exposed to simply the FTSE. I invested in sectors such as health and technology.

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Previous bubbles have more to do with sentiment than green light fundamentals.

Also Im not all that exposed to simply the FTSE. I invested in sectors such as health and technology.

To the bears who advise me to read Steinbeck, I say this, read............................................................................

.......... The Mr Men

Firstly Mr Happy

Secondly Mr Miserable

"You must be Mr Silly then ! " :lol::lol:

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To the bears who advise me to read Steinbeck, I say this, read............................................................................

.......... The Mr Men

Firstly Mr Happy

Secondly Mr Miserable

"You must be Mr Silly then ! "  :lol:  :lol:

Better than Mr Chicken.

You will never find a risk free investment endeavour. There will always be clouds on any economic horizon.

Some bearish types think theyre going to wake up one morning and find there are no bad news stories in the press, no potential economic disaters, and that will at last give them confidence to invest big - time. Problem is, with any life opportunity a degree of risk will attach.

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Better than Mr Chicken.

You will never find a risk free investment endeavour. There will always be clouds on any economic horizon.

Some bearish types think theyre going to wake up one morning and find there are no bad news stories in the press, no potential economic disaters, and that will at last give them confidence to invest big - time. Problem is, with any life opportunity a degree of risk will attach.

You could also go for the very long term strategy. I got zapped in the dotcom crash but i never sold and i have recovered quite a few losses (especially with FTSE250 shares). I am building up a sizable cash buffer so i hopefully shouldnt have to fall back on my equities an I plan to leave them there for 20 years when i would use them as retirement money.

These days unless you are a day-trader freak you should hold equities for 10 years minimum.

Worst thing i could have done was sell at a market low after everyone else sold. I managed to avoid doing that.

Edited by penbat1
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equities...zzzz......gold bars...zzzz.....

this waiting for houses to level off is very boring. it livens it up a bit to whip out just 5k or so and ride the day trader rollercoasters. im doing ok......and i dont even know what im really doing... B)

having watched any real savings dissapear under HPI i think it rather play with it than lose it to some joe who happens to say his house is worth 3 times what it really is.

no thanks.

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Hey I am investing in index trackers and unit trusts so i am spreading my risk. Anyway i could always fund switch which anyone else could do.

Same here, but I dont use those muppet devices - 'Investment Trusts' which can be highly geared and volatile. Unit Trusts are the way for me - youre closer to the underlying assets.

Like you I kept buying through the last SM downtime and now its proving a good stratergy.

All those people out there beavering away to make thier companies richer must be good to invest in.

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Eh? Hold them for ten years and then take a look and see if they did OK or not?

That's too passive for me - hope it works for you  :blink:

To dictate any optimal time to hold an asset is bonkers. The optimum timing might be 10 minutes or 10 years plus depending on the asset and the circumstances.

The two biggest ways to lose money on shares:

1. Selling too quickly

2. Not selling quickly enough

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How long you hold for depends if you are speculating/trading or really investing. The two are worlds apart.

The trader doesn't care about intrinsic value; he holds short term positions in the expectation of the that price will move in a certain position because it has been oversold/overbought. Trading is 90% guaranteed to lose you money. It is a minus-sum game. No only do you have to be right about which way price goes, but you have to be right enough to beat the spread and commission fees.

Investors buy shares in companies in the expectation that intrinsic value will rise in future years as the company earns more. He doesn't care about short term fluctutations in the shareprice so long as they are a fair reflection of the company's true worth. The investor cares more about a company's earnings and than its shareprice. Proper investors never lose money in the long run. Even if you had bought the FTSE at its peak in March 2000, with dividends reinvested and cost averaging (i.e. buying more of the market when it is cheaper), you would be healthily in profit by now.

Edited by Van
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