FTSE Watch - It just keeps going up!

mystic_trev

FTSE 100 achieves longest winning streak on record
The FTSE 100 has staged an 11-month rally, marking its longest winning streak on record since its inception in 1984.

http://www.telegraph.co.uk/finance/markets/10028879/FTSE-100-achieves-longest-winning-streak-on-record.html

It's been having an amazing run, what next? Correction or climb?

Graham_Devon

mystic_trev wrote: »

http://www.telegraph.co.uk/finance/markets/10028879/FTSE-100-achieves-longest-winning-streak-on-record.html

It's been having an amazing run, what next? Correction or climb?

I'd say it depends totally on the amount of stimulus put into the economy worldwide over the next few months.

That is all it seems based on.

Take for example Cyprus. It hardly dented the FTSE. But when it was "sorted" it shot up. It seems problems don't seem to effect the FTSE (or other indices) at the moment, but solutions propell it further.

Remember when problems like Greece saw the FTSE radically hit? Now that it's knoen nothing can fail, it seems the markets no longer care if there are issues.

mcfisco

Before you know it, it'll be back at last century's levels

ruggedtoast

I've been making out like a bandit on Standard Life from the demutualisation shares I got a few years ago. I have a good feeling about those bad boys!

I am also doing fantasy share watch and would have lost a fortune on Rockhopper, Tomtom and Nintendo, if i had had the wuntuns to actually invest.

Thrugelmir

Correction. Market prices are detached from underlying performance of the actual businessess, i.e. failing profits in many cases.

[Deleted User]

mystic_trev wrote: »

http://www.telegraph.co.uk/finance/markets/10028879/FTSE-100-achieves-longest-winning-streak-on-record.html

It's been having an amazing run, what next? Correction or climb?

Hmm - the many many quid question!

My gut feeing is a small fall over the next month or so, then a climb again when/if new optimism begins to appear about some economic recovery .. if shares are so high at the moment when the economy is "cream crackered" where might they go if a "recovery" actually happens? I have heard it said (but not personally researched it!) that one reason why the FTSE is so high is because many of the companies earn so much of their profits outside the UK/Eurozone, so my preference would be to look at companies with a worldwide reach.

(Disclaimer - the value of shares can fall as well as plummet. Always do your own research as a monkey with a pin and a copy of the FT could probably pick better performing stocks than me. If I become a multi-billionaire as a result of my sojourn into the stock market, I'll announce it on DT first:rotfl:!)

WR

TruckerT

Graham_Devon wrote: »

Now that it's knoen nothing can fail, it seems the markets no longer care if there are issues.

Until 2007, it was 'known' that the property market 'could not fail'

TruckerT

purch

Remember. Those doing the buying are usually doing it with someone elses money.





We used to call it the 'Acapulco Spread'

Generali

Graham_Devon wrote: »

I'd say it depends totally on the amount of stimulus put into the economy worldwide over the next few months.

That is all it seems based on.

Take for example Cyprus. It hardly dented the FTSE. But when it was "sorted" it shot up. It seems problems don't seem to effect the FTSE (or other indices) at the moment, but solutions propell it further.

Remember when problems like Greece saw the FTSE radically hit? Now that it's knoen nothing can fail, it seems the markets no longer care if there are issues.

In the jargon, the bad news was 'priced in'.

That Cyprus, Greece etc are FUBAR'd is hardly a secret. As a result the markets when prices are being set assume these guys are toast.

Let's take an example. You are buying a house which you are pretty certain is going to have a bypass built next to it. The price you are prepared to pay would be the price of the house as if the bypass was already in place. Perhaps you might pay a small premium to reflect the fact that it might not happen but when the bypass is built it would have no impact on the value of your house as you had priced it in already.

However, if you didn't know about the bypass and it was announced the day after your house purchase, your house would fall in value as you can't price in what you don't know about.