Ftse Hits 6,000

[BelfastVI]

I know very little about the stock exchange, but from time to time it surprises me. It hit a bit of a milestone at 6,000.

From my crude calculations this shows that it has recovered 85% of the losses it made in the crash. It had peaked at 6,700 in 2007, although it was also at this level in 1999.

I have no idea what this means for house prices, if anything. Although when it is going down view it as something negative.

[Peter Hun]

Share prices are going up because they offer inflation protection. The dividends will rise as profits rise when the companies charge more for their products and services. Bonds, where a lot of institutional money is often stored, are looking very risky and offer a poor return with the expected high inflation.

I wish people would remember that dividend yield is the most important factor to institutional investors - not the share price in itself - and that pension funds etc are not allowed to speculate/trade in shares but must invest long term. Trading is banned.

Edited January 5, 2011 by Peter Hun

[Tiger Woods?]

Share prices are going up because they offer inflation protection. The dividends will rise as profits rise when the companies charge more for their products and services. Bonds, where a lot of institutional money is often stored, are looking very risky and offer a poor return with the expected high inflation.

I wish people would remember that dividend yield is the most important factor to institutional investors - not the share price in itself - and that pension funds etc are not allowed to speculate/trade in shares but must invest long term. Trading is banned.

Which means that they are playing the markets with one hand tied between their backs relative to hedge funds.

Nice. Just where I want my money to be.

[subby]

hedge funds = scumbag gamblers