Ftse 100 Almost At 7000

[or in excess of]

What is the main driver of FTSE 100? It is now within a whisker of hitting 7000. Is it purely down to QE?

[MrMonkey]

All that money printed by the BoE has to go somewhere.

[cashinmattress]

Oh man I feel rich now. /s

Off to Primark, followed by the Shelter charity shop.

[zugzwang]

Madman Kuroda, Yellen da Felon, Carnage at the Bank etc. have gone all-in.

Cheaper debt and more of it! Forever and ever.

The underlying message from the Federal Reserve was received loud and clear across global markets; “We’re still not hiking interest rates so go ahead and take some risk.” The risk-taking sentiment was evident in a rise in equities and commodities and a drop in the US dollar.

Edited September 22, 2016 by zugzwang

[Snagger]

August is over, traders are back from holiday and are now chasing their year end bonuses.

[oracle]

What is the main driver of FTSE 100? It is now within a whisker of hitting 7000. Is it purely down to QE?

it was within a whisker of 7000 in the year 2000.

so it's gone precisely nowhere for the last 16 years,(actually lost about 40% in real terms over that period if you take inflation into account)

nothing to write home about considering DOW and DAX are both up 70%+ during the same period.

purely down to bad political management.

[John The Pessimist]

We've known for hundreds of years that hot air rises.......

Need I say more?

[Wayward]

Fall in pound supports ftse 100. Most income generated over seas.

[wish I could afford one]

What is the main driver of FTSE 100? It is now within a whisker of hitting 7000. Is it purely down to QE?

Don't know as my crystal ball is very firmly broken. What I do know is that by just continually mechanically buying a diversified portfolio of assets including the FTSE 100 and by rebalancing via either new money or selling the best performing assets my portfolio reached a new all time high today.

[200p]

The FTSE 100 can be ignored. Look at the FTSE all share index, it's broader- if it clears 3,800, then it's blue sky, and time to at least look at equities.

The Sp500 and NASDAQ are also at all time highs.

If we can take these levels as bases, that keeps your "risk capital" small.

We have a new generation of consumers - the millennials - look at what they spend their money on, and see if you can invest in that area. They are the future, like it or not.

[wish I could afford one]

it was within a whisker of 7000 in the year 2000.

so it's gone precisely nowhere for the last 16 years,(actually lost about 40% in real terms over that period if you take inflation into account)

nothing to write home about considering DOW and DAX are both up 70%+ during the same period.

purely down to bad political management.

That's not really true though is it? FTSE100 Total Return Index (so includes dividends) between 27 April 2000 (can't get back to 01 Jan as don't have the dataset) and 21 Sept 2016 is up 95.7%.

Agree inflation has done a lot of damage to it. I'm at 36% devaluation between Apr 2000 and Aug 2016.

So if you'd invested solely in the FTSE100 (something I certainly wouldn't do) you'd be ahead. Sure not as ahead as some other options but still ahead.

Edit: Aug 2000 should be Aug 2016

Edited September 22, 2016 by wish I could afford one

[Snagger]

The FTSE 100 can be ignored. Look at the FTSE all share index, it's broader- if it clears 3,800, then it's blue sky, and time to at least look at equities.

The Sp500 and NASDAQ are also at all time highs.

If we can take these levels as bases, that keeps your "risk capital" small.

We have a new generation of consumers - the millennials - look at what they spend their money on, and see if you can invest in that area. They are the future, like it or not.

I think of the boomers as the "Me Me Me" generation. They spent their parents wealth, kept their own wealth to themselves, and squandered their childrens future wealth.

They will steal the NHS for themselves before they are done.

Edited September 22, 2016 by Snagger

[GreenDevil]

Buy buy buy. FTSE to the moon, 10,000 mentioned on another thread.

Yes purely down to cheap bubble money and QE to infinity policies.

[VeryMeanReversion]

What is the main driver of FTSE 100? It is now within a whisker of hitting 7000. Is it purely down to QE?

Yield on FTSE ~3%.

QE-induced yield on everything else = 0%.

[TheCountOfNowhere]

What is the main driver of FTSE 100? It is now within a whisker of hitting 7000. Is it purely down to QE?

Freshly printed QE cash, stealing from you and giving to the city of london.

Welcome to the 2nd biggest fraud in history

[Uncle_Kenny]

Fall in pound supports ftse 100. Most income generated over seas.

In addition, Shell, BP and BHP Billiton all pay dividends in US dollars. I assume there are other mega cap firms who do the same, thus a large part of the FTSE100 valuation immediately benefits from a devaluation in the pound.

[Mikhail Liebenstein]

Fall in pound supports ftse 100. Most income generated over seas.

Yes, and I suspect this has further to go. The pound falls, overseas earnings rise, so do yields, plus the market is cheaper for foreign buyers.

This will have the effect of pushing the market up and generate momentum, at which point it may well start to suck funds away from the BTL and perhaps even bonds.

This is cyclical, and I think we are still waiting for the great reversal to happen, ie the point that investors favour equities over bonds/property. But it could be soon.

To be honest, this is the only way out. We need a good dose of inflation, with sharp equity rises and wage rises and low interest rates for just a bit longer to wipe out the debt. The alternative is defaults and jubilees.

The irony is that all the boomers pensions are sat in bonds/cash as that is the investment strategy for their age profiled pension funds and also of course housing. These are the two classes that will under-perform.

At some point Gen-X and the Millennials need to wealthier than the boomers who should by rights be sat in the geriatric hovels. The above mechanism is how this will happen.

Let see the average wages at £120k per year, and council Tax at £600 pcm and weekly shopping at £350 per week and gas/electric at £400 pcm, and that should sort out the boomers on fixed incomes.

Edited September 23, 2016 by Mikhail Liebenstein

[VeryMeanReversion]

Yes, and I suspect this has further to go. The pound falls, overseas earnings rise, so do yields, plus the market is cheaper for foreign buyers.

This will have the effect of pushing the market up and generate momentum, at which point it may well start to suck funds away from the BTL and perhaps even bonds.

This is cyclical, and I think we are still waiting for the great reversal to happen, ie the point that investors favour equities over bonds/property. But it could be soon.

I came to a very similar view last year but waited until the Feb'16 and Brexit dips to pile in. Went mostly for FTSE100 with foreign earnings.

BTL and Bonds money rotating into equities could produce a ridiculously large boom.