FTSE taking a bashing today

Andrew64

This article says that those who use the chartist method think the FTSE will drop to somewhere between 2800 and 2300:

http://thescotsman.scotsman.com/business/Scrutineer-Chartist-predictions-raise-chilling.5027277.jp

Chartist predictions raise chilling questions over just how far markets have yet to fall

Kev09

The FTSE will not have much more to fall, there are still plenty of companies making money out there and pretty soon, It will be worth buying stuff for dividend yield alone.

You are getting next to nothing putting your money in the bank, but there are plenty of shares around which could generate income, once the market gets wind of this, these are stocks which will pull it up, by the same token the big banks and insurance are in danger of being booted out in an ultimate humilation as there market caps plummet !!

It might go to 3000 but it will not hang about there, UNLIKE the housing market which will be going nowhere for years!!!!!!!!!!!!!!!!!!

Dithering_Dad

JonnyBravo wrote: »

Absolutely I do. Especially when it is well deserved.
I reported ad44downey as he was doing the very thing he reported me for.
I'd not reported a post before but now I think it is an excellent response to an abusive poster who doesn't like it when it is dished out to them.
You are a similar style of poster and so deserve the same.

Have a nice day!

Just put this idiot (napolean) on 'Ignore'. I've had him and his other logon (fatpig) on ignore for months now and I can't say I've missed out on anything he's posted. It's a waste of eye muscles to move your eyes over the text because this bloke posts nothing of value. Ever. Period.

mrposhman

Kev09 wrote: »

The FTSE will not have much more to fall, there are still plenty of companies making money out there and pretty soon, It will be worth buying stuff for dividend yield alone.

You are getting next to nothing putting your money in the bank, but there are plenty of shares around which could generate income, once the market gets wind of this, these are stocks which will pull it up, by the same token the big banks and insurance are in danger of being booted out in an ultimate humilation as there market caps plummet !!

It might go to 3000 but it will not hang about there, UNLIKE the housing market which will be going nowhere for years!!!!!!!!!!!!!!!!!!

This is one of the reasons I don't think it will go as far as some people think. In general, recessions are normally coupled with high interest rates hence why people will probably be more willing to leave their money where it is.

As it stands, i think more and more people will remove their cash and put it in investment instruments (we've already seen it with bonds) but also income stocks which while low priced offer a decent current return on your cash whilst also offering long term capital growth.

I think this is one of the reasons HSBC has dropped as they have cut the dividend.

mrposhman

SGE1 wrote: »

Yes, because when Labour came into power in 1997, their main pledge was to "keep the FTSE sky high"...

maybe not, but Gordon did say "there will be no more boom and bust" which can be related quite specifically to the FTSE actually.

StevieJ

JonnyBravo wrote: »

Reported for abuse

:rolleyes:

I think Fatpig and Napoleon are the same person ( seems like a reference to Animal Farm), I think Squealer would have been more appropriate

JonnyBravo

napoleon wrote: »

rotten jonny, I'm sure Martin Lewis will cancel all his media appearances and investigate your complaints with a matter of urgency :rotfl:

[the post above has been reported by rotten jonny]

Here's the update you requested in your abusive private message to me at 1.00pm today.

I've reported that as well.

StevieJ

chucky wrote: »

it's getting more than a bashing - it's getting a good and proper tonking

New York opening will be the key this afternoon if it goes anywhere near 3600

what does it have to do with Labour or any political party!?
was this part of their election manifesto??

The previous low is acting as some support (3665), it has dropped a little below this but not much and now above it, interesting to see where it closes.

purch

I'm quite surprised that HSBC has taken such a pounding - given recent events and their exposure through their US acquisition they have done well despite the odds

Yeah.

Stock prices usually go through the roof when a company announces a 62% drop in profits and a £12.5 Billion rights issue :eek:

Kez100

I don't understand.

In that article the clever people say..


The bank also said pre-tax profits for 2008 were $9.3bn (£6.5bn), down 62% on the previous year after it wrote down the value of US assets by more than $10bn. "The big issue [for markets] is the fact that HSBC - one of the biggest and strongest banks around - is having such problems," said Jonathan Jackson and Killik & Co.

To me (an apparantly not clever person) because I earn not a lot, I read that HSBC wold have made $19.3 bn if it were not for writedowns. If $9.3bn is a reduction of 62% we would have expected a profit of $24.47bn.

So, there are two problems - one a reduction in profit of $5.17bn (ir about 25% of $24.47) and a write down of $10bn.

The write down has, in another article I read today, been due to the useless purchase of some subprime company in the USA a couple of years ago. This should have been easily forseen by the clever people.

So, the only real news today is that their profits have fallen 25%.

On the basis we are in the midst of the most serious economic banking crisis for twenty million years, that sounds quite good to me! Ok, perhaps not good and their shares are bound to take a readjustment, but its not really worth a tanking FTSE, surely?

i know they want a rights issue but isn't that really just a recoup of dividends paid out on better years which they perhaps should have kept for a rainy day (which has now come due to crappy subprime company purchase). So, again and effect on HSBC share price but not the whole FTSE.