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penbat1

Stock Market Flying High

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FTSE100 is currently 5526.90 up 66.90 - about a 4 and a half year high

FTSE250 is currently 8187.90 up 85.10 - an alltime high

Edited by penbat1

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FTSE100 is currently 5518.80 up 58.80 - about a 4 and a half year high

FTSE250 is currently 8158.80 up 56.00 - an alltime high

Sounds like money is making its way from the property maket and into the stock market ;)

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FTSE100 is currently 5526.90 up 66.90 - about a 4 and a half year high

FTSE250 is currently 8170.60 up 67.80 - an alltime high

Eh? Why? There's no rationale to this. There's no future value to discount through capital growth because the economy is shot through with debt, with significant bad debt risk in it.

Any idea what's driving this?

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Eh? Why? There's no rationale to this. There's no future value to discount through capital growth because the economy is shot through with debt, with significant bad debt risk in it.

Any idea what's driving this?

Read an article in the London Evening Standard last night that said with all the buybacks and takeovers the supply of shares is diminishing, which if true, would help to inflate prices. Plus I think people are eyeing the steady gains in the stock market. If you've made a packet out of property and weren't that creative, I would suggest the stock market would be your next target.

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FTSE100 is currently 5526.90 up 66.90 - about a 4 and a half year high

FTSE250 is currently 8170.60 up 67.80 - an alltime high

Thanks for sharing.

How did you manage to find that out?

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Read an article in the London Evening Standard last night that said with all the buybacks and takeovers the supply of shares is diminishing, which if true, would help to inflate prices. Plus I think people are eyeing the steady gains in the stock market. If you've made a packet out of property and weren't that creative, I would suggest the stock market would be your next target.

There is an awfully large amount of cash trying to find a home in the City. Thats why takeovers are on the up and why companies are buying back shares. It all adds up to problems when the money starts tightening up but for the moment the City are (and homeowners were) making hay while the sun shines.

As for when it will end I don't know. But I'd guess another Black monday will appear sometime in the next two years.

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There is an awfully large amount of cash trying to find a home in the City. Thats why takeovers are on the up and why companies are buying back shares. It all adds up to problems when the money starts tightening up but for the moment the City are (and homeowners were) making hay while the sun shines.

As for when it will end I don't know. But I'd guess another Black monday will appear sometime in the next two years.

I think the banks in corporate deals have had the same attitude to lending as in the mortgage sector. They are quite happy to lend billions without a second thought. All this means that the businesses will have to perform spectacularly over the next few years if interest rates start creeping back up.

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Thanks for sharing.

How did you manage to find that out?

I use this site for latest FTSE info http://www.thisismoney.co.uk/news It is updated about every 5 minutes. If you dig a bit deeper you find loads of useful graphs as well on historical performances of the indexes.

No more slagging off my signature OK ? :D

Edited by penbat1

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There is an awfully large amount of cash trying to find a home in the City. Thats why takeovers are on the up and why companies are buying back shares. It all adds up to problems when the money starts tightening up but for the moment the City are (and homeowners were) making hay while the sun shines.

As for when it will end I don't know. But I'd guess another Black monday will appear sometime in the next two years.

possibly quite soon!

a little look into history tends to suggest the stockmarket usually gives a new fed chairman a bit of a hard time.

volcker had one,as did greenspan.....so I think bernanke may well do too.

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I hate to say I told you so, but.......

Corporate earnings are looking great, they're throwing off cash and all this has to make equities a shrewd play. I reckon we're in the early-mid stages of a a flight from grossly over-valued real estate to under-valued shares, which will only increase once the HPC kicks in.

Having said this, I agree with the last poster. Wall Street always likes to give the new FED Chairman a shock, and so a correction of 5-10% in January/February is probable. I took some profit from the table last Friday to be on the safe side, though I expect the traditional Santa rally to propel the FTSE 100 to 5750 by year end. I especially like the look of speciality finance, insurance and life insurance and my favourite income stock, Lloyd's TSB.

And being a contrarian, the number of 'ordinary' people I talk to who say equities are 'risky' whilst property is 'safe' makes me think I'm dead on with my thoughts on this.

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Corporate earnings are looking great, they're throwing off cash and all this has to make equities a shrewd play. I reckon we're in the early-mid stages of a a flight from grossly over-valued real estate to under-valued shares, which will only increase once the HPC kicks in.

I thought businesses were announcing losses left right and centre and chucking thousands out on the dole? What are they making money out of?

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I hate to say I told you so, but.......

Corporate earnings are looking great, they're throwing off cash and all this has to make equities a shrewd play. I reckon we're in the early-mid stages of a a flight from grossly over-valued real estate to under-valued shares, which will only increase once the HPC kicks in.

Having said this, I agree with the last poster. Wall Street always likes to give the new FED Chairman a shock, and so a correction of 5-10% in January/February is probable. I took some profit from the table last Friday to be on the safe side, though I expect the traditional Santa rally to propel the FTSE 100 to 5750 by year end. I especially like the look of speciality finance, insurance and life insurance and my favourite income stock, Lloyd's TSB.

And being a contrarian, the number of 'ordinary' people I talk to who say equities are 'risky' whilst property is 'safe' makes me think I'm dead on with my thoughts on this.

I posted a message on the Financial Markets area about there being loads of accumulation in stocks I keep checking out. I think we are on for a rally, last Friday the FTSE 100 breached 5500 and I think Monday will see it marching up quite nicely.

Fingers crossed.

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anyone got any opinions what will happen to the FTSE if the £ continues to slide? Being bearish on the £ and Bullish on the FTSE doesn't seem to fit !

Could it propel it higher? Many FTSE 100 & 250 companies do a lot of business in the US, this could make it more viable for the UK to export more and reduce the trade balance.

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anyone got any opinions what will happen to the FTSE if the £ continues to slide? Being bearish on the £ and Bullish on the FTSE doesn't seem to fit !

It fits perfectly.

'Low' interest rates on the £ vs $ causes weakening of the pound, but strengthens the FTSE because companies can borrow cheaply and investors prefer stocks to low interest on thier cash

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It fits perfectly.

'Low' interest rates on the £ vs $ causes weakening of the pound, but strengthens the FTSE because companies can borrow cheaply and investors prefer stocks to low interest on thier cash

But surely on the flip side why would foreign investors want to put money in the FTSE when they would be losing money on the forex rate?

I would have thought there is more foreign than domestic investment in the FTSE?

EDIT: according to this page foreign investment in the FTSE is 33%

http://www.uksa.org.uk/Uk_stock_market.htm

Edited by mescalinemonkey

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But surely on the flip side why would foreign investors want to put money in the FTSE when they would be losing money on the forex rate?

I would have thought there is more foreign than domestic investment in the FTSE?

EDIT: according to this page foreign investment in the FTSE is 33%

http://www.uksa.org.uk/Uk_stock_market.htm

Well, the foreign investors aren't buying sterling, they're buying international companies listed with a sterling price. These companies receive revenues in all currencies which is one reason why these companies will go up in a low rate environment, as well as 'against sterling'. And just becuase sterling has fallen vs $ doesn't necessarily mean it will fall further (the dollar has big problems too, perhaps more than sterling)

Edited by tonification

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Just as a quick aside, Boeing have announced a huge deal and after a decent finish last week on Wall St, I reckon Monday could be a lot of fun for traders who are long. Although stay on your toes in case there's a Thanksgiving sell off at some point.

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anyone got any opinions what will happen to the FTSE if the £ continues to slide? Being bearish on the £ and Bullish on the FTSE doesn't seem to fit !

...quite,it'll be one hell of a tug of war!

on the plus side,a weaker sterling makes the p/e on the FTSE look great.

on the downside,the weak pound filters through to inflation,which will increase the prospect of IR hikes,unless domestic growth slows to compensate........hey presto the HPC scenario!!

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FTSE100 is currently 5548.40 up 24.60 - about a 4 and a half year high

FTSE250 is currently 8344.60 up 25.70 - an alltime high

FTSE100 year end of 5700 and FTSE250 year end of 8500 looks achievable.

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FTSE100 is currently 5548.40 up 24.60 - about a 4 and a half year high

FTSE250 is currently 8344.60 up 25.70 - an alltime high

FTSE100 year end of 5700 and FTSE250 year end of 8500 looks achievable.

Yeah, and the FTSE100 has now lost all these gains and is back to below 5000. One could have made £800 today by just selling the FTSE100 Future in the morning and buying it back in the evening. As always, I had an inkling it would happen, but never had the guts to do it. At £10 a tick it takes balls of steel.

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Yeah, and the FTSE100 has now lost all these gains and is back to below 5000. One could have made £800 today by just selling the FTSE100 Future in the morning and buying it back in the evening. As always, I had an inkling it would happen, but never had the guts to do it. At £10 a tick it takes balls of steel.

5000?????

........I don't see it as a problem going back below 5500.....it's just a re-test.FTSE will certainly go higher if there is a cold snap,or US productivity looks in good shape.....that'll bolster the oil price and shell/bp will be bouncing.

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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