FTSE100 is 10% higher than 1 month ago

[Biscuit]

If as you say it is 'inflated' that would suggest that those investor's would be getting less than 0% (a loss) when it, in your eyes finds its 'true' value, if they dont then it clearly isnt inflated.

It also interests me that you stated shortly after Brexit when the FTSE 100 showed some gains that the FTSE 250 was the REAL indicator of the nations economic prosperity, now that the 250 is at a 14 month high you dismiss this due to historic low interest rates as if we didnt already have historic low interest rates when you made that originally comment.

What can I say, just calling it as I see it. You can argue about whether the FTSE is inflated or not, but the fact is people are buying up shares because rates are so low. Carney indicated that the rates will go down again and commentators suggest we could be looking at 0% by December. You can dismiss that as irrelevant to the price of the FTSE if you want but I won't be,

 

[ditchy]

FTse All share index is probably a better indicator of the market and suprise suprise is also at its highs post Brexit at 3715 .12

http://www.londonstockexchange.com/...ndices/summary/summary-indices.html?index=ASX

 

[dazzer6666]

What can I say, just calling it as I see it. You can argue about whether the FTSE is inflated or not, but the fact is people are buying up shares because rates are so low. Carney indicated that the rates will go down again and commentators suggest we could be looking at 0% by December. You can dismiss that as irrelevant to the price of the FTSE if you want but I won't be,

Source for that 'fact'? Low interest rates are the only factor?

 

[Half Time Pies]

Anyone who is looking at the FTSE as a indicator that Brexit was a good decision for the economy is barking up the wrong tree. The fact that the Bank of England has had to step in to prop up the economy with more QE and a lowering of interest rates is all you need to know, this is not a good thing! These measures will certainly raise the price of shares and other assets but very little of the money will filter down to where its most needed. We have seen the same cycle repeated time and time again since the financial crisis and 8/9 years on we still have the lowest interest rates on record, poor growth and a gap between the rich and the poor which is getting wider by the day.

 

[JC Footy Genius]

Repeating the usual far to early to tell caveat but ....

https://www.theguardian.com/business/2016/aug/23/uk-economic-surveys-defy-brexit-fears

http://www.telegraph.co.uk/business/2016/08/23/exports-pick-up-as-weak-pounds-boosts-the-economy/

http://www.telegraph.co.uk/business...nfidence-bounces-back-as-brexit-jitters-fade/

... predictions of the imminent death of UKPLC after Brexit were perhaps greatly exaggerated.

 

[BigGully]

What can I say, just calling it as I see it. You can argue about whether the FTSE is inflated or not, but the fact is people are buying up shares because rates are so low. Carney indicated that the rates will go down again and commentators suggest we could be looking at 0% by December. You can dismiss that as irrelevant to the price of the FTSE if you want but I won't be,

But you are not calling as you see it, you are just contradicted yourself.

YOU said that the real indicator for the state of the British economy was the FTSE 250, then you dismiss it when it performs well.

YOU said it was inflated, meaning it is overpriced, therefore those that you say joining the market to get better rates of interest wont get it anyway, so who is advising investors to buy inflated stocks, who exactly ??

YOU are just making vague forecast based on very little fact, tripping over your last set of forecast that haven't come to fruition to suit your agenda, please don't tell me you are an adviser, god help us.

 

[BigGully]

Anyone who is looking at the FTSE as a indicator that Brexit was a good decision for the economy is barking up the wrong tree. The fact that the Bank of England has had to step in to prop up the economy with more QE and a lowering of interest rates is all you need to know, this is not a good thing! These measures will certainly raise the price of shares and other assets but very little of the money will filter down to where its most needed. We have seen the same cycle repeated time and time again since the financial crisis and 8/9 years on we still have the lowest interest rates on record, poor growth and a gap between the rich and the poor which is getting wider by the day.

Utter tosh.

The bank of England has been printing money (QE) and reducing interest throughout our time when there was never any thought of us having Brexit, you too are just pissing in the wind.

The BoE has an obligation to ease monetary policy when it see's fit, its no different today as 10 years ago, irrespective of us being in or out of the EU, thats their remit.

As a Brexiteer I felt that our economy was strong enough to survive a bumpy ride shortly after Brexit and prosper in the longer term, currently we seem to have navigated even the 'Bumpy Ride'.

It was the Remainers that particularly forecasts economic catastrophe, something that looks likely not to happen, but I nor you cannot possibly foresee the future markets, I expect some unexpected global circumstance will rock the markets at sometime upstream, but we cannot be sure.

Ultimately we will continue to do comparatively well, the EU will continue to flounder perhaps not even survive and the Remainers will continue to whine on and on and on, they are the only certainties I can see.

 

[dazzer6666]

Anyone who is looking at the FTSE as a indicator that Brexit was a good decision for the economy is barking up the wrong tree. The fact that the Bank of England has had to step in to prop up the economy with more QE and a lowering of interest rates is all you need to know, this is not a good thing! These measures will certainly raise the price of shares and other assets but very little of the money will filter down to where its most needed. We have seen the same cycle repeated time and time again since the financial crisis and 8/9 years on we still have the lowest interest rates on record, poor growth and a gap between the rich and the poor which is getting wider by the day.

Base rate went to 0.5% in 2009............and there quickly from 5% in 2008 so we've had a 'bad thing' since a long time before Brexit was even a twinkle in Boris' eye. The single 0.25% movement in over 7 years isn't really significant.

 

[Half Time Pies]

Base rate went to 0.5% in 2009............and there quickly from 5% in 2008 so we've had a 'bad thing' since a long time before Brexit was even a twinkle in Boris' eye. The single 0.25% movement in over 7 years isn't really significant.

Of course interest rates have been low since 2009, I am not claiming that Brexit is responsible for low interest rates. However the latest round of QE and the lowering of interest rates is directly linked to the Brexit vote. Before that the talk was of when interest rates would rise. The last round of QE was back in 2012 and certainly not on the agenda until the out vote.

The point I am making is the Bank of England are using the same monetary policy instruments to respond to Brexit as they did to the financial crisis, the result of which back then was higher share and asset prices, and this will be replicated again, hence the buoyancy seen with the FTSE.

Financial markets are not showing confidence in a post Brexit UK but rather confidence that based on previous experience QE and lower interest rates generally leads to higher share prices.

 

[Half Time Pies]

Repeating the usual far to early to tell caveat but ....

https://www.theguardian.com/business/2016/aug/23/uk-economic-surveys-defy-brexit-fears

http://www.telegraph.co.uk/business/2016/08/23/exports-pick-up-as-weak-pounds-boosts-the-economy/

http://www.telegraph.co.uk/business...nfidence-bounces-back-as-brexit-jitters-fade/

... predictions of the imminent death of UKPLC after Brexit were perhaps greatly exaggerated.

But we haven't Brexited yet and are unlikely to do so for some time....

 

[Tom Hark Preston Park]

But we haven't Brexited yet and are unlikely to do so for some time....

Quite. We'll be made to replay the vote on Brexit until we get the 'right' result.

In the meantime the market spivs will just keep on jerking the FTSE100 up and down to suit their own ends.

Business as usual then.

 

[dazzer6666]

Of course interest rates have been low since 2009, I am not claiming that Brexit is responsible for low interest rates. However the latest round of QE and the lowering of interest rates is directly linked to Brexit. Before that the talk was of when interest rates would rise. The last round of QE was back in 2012 and certainly not on the agenda until the out vote.

The point I am making is the Bank of England are using the same monetary policy instruments to respond to Brexit as they did to the financial crisis, the result of which back then was higher share and asset prices, and this will be replicated again, hence the buoyancy seen with the FTSE.

Financial markets are not showing confidence in a post Brexit UK but rather confidence that based on previous experience QE and lower interest rates generally leads to higher share prices.

....but if Brexit was as doom-laden as many seem to expect (indeed hope, just so they can say 'I told you so' ?) , the markets wouldn't be up as this would negate the QE impact. .

 

[Half Time Pies]

....but if Brexit was as doom-laden as many seem to expect (indeed hope, just so they can say 'I told you so' ?) , the markets wouldn't be up as this would negate the QE impact. .

Brexit itself might but we are just talking about a brexit vote here, article 50 hasn't been invoked and won't until 2017 at the earliest and even then the Brexit process is likely to take 2 years. Effectively its business as usual and based on previous experience flooding the financial markets with extra cash will lead to an increase in share prices, it always does.

 

[Mo Gosfield]

Quite. We'll be made to replay the vote on Brexit until we get the 'right' result.


Those that are passionate to remain don't seem to give any consideration to the probability that, eventually, sooner rather than later, the EU will cease to exist as it is known today.
If you study the opinions of the historical, political and economic intelligentsia, they are forecasting an upper limit of 12-15 years but the likelihood of a much shorter time-frame.

 

[Poyningsgull]

We are now nearing an all time record high. What a disaster.!

 

[nickbrighton]

We are now nearing an all time record high. What a disaster.!

because the ftse 100 is based on shares from multi national companies, so a weak pound actually is good for them, however with the £ continuing to fall the wider picture isnt so good. Brexit hasnt happened, there is no discernable effect yet as NOTHING has happened. We are still part of the EU trading tariff free inj the single market. As soon as May announced the date for Article 50 the £dropped. It will probably drop more, as we get closer to the date of invocation, and again as we near the parting of the ways in 2019, making imports more expensive, which will be compounded when the tariffs for exporting to the EU (in all likleyhood )come in.

 

[Blue Valkyrie]

As I don't export anything myself, a weak pound is not good when I go overseas

 

[Buzzer]

because the ftse 100 is based on shares from multi national companies, so a weak pound actually is good for them

If that were the main reason then there would be a direct correlation between the sterling/dollar rate and the FTSE and there is nothing of the sort, if there were it would make gambling on the stock exchange a lot, lot easier. And also, if what you say were true then the FTSE would have been a lot lower pre-Brexit.

 

[alfredmizen]

I voted to leave , let's be honest here , we really can't congratulate ourselves on the level of the FTSE or any other economic indicator until AFTER the terms of us leaving are agreed.

 

[Biscuit]

Everyone realises we haven't actually left yet right? We're currently in a Goldilocks situation of low rates and a worthless pound - this isn't something that can continue indefinitely.