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FTSE Outlook
Comments
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That would have been a problem if you held a FTSE 100 ETF and set a stop-loss that triggered when markets opened, but otherwise not so much. Anyone who held on for a few hours would have seen that loss evaporate. And anyone lucky enough to be able to get a buy order executed during those volatile first few minutes of trading could now be sitting on a 35% gain, vs the 15% achieved by those who simply sat on their hands throughout.That was after a 20% drop.
The usual caveats of why invest in the FTSE 100 anyway apply.0 -
dont_use_vistaprint wrote: »No its not academic, just trying to understand how markets, GBP, inflation, base rates are impacted and relate to political factors
That does sound academic to me!0 -
No idea but it doesn't feel like this country has become fundamentally better over the period either.
If anything we might have gone backwards a bit which is maybe why it hasn't even gained inflation.
Still there's the dividend income, it's much more complicated, etc.
Alex
Constituents of the index change ever quarter. ARM was delisted following it's takeover by Softbank. Inflation is a meaningless measure to judge it by. Commodity reserves for example are valued by market value. China drives the price of many commodities depending on demand. There's no linkage to inflation.0 -
That was after a 20% drop.That would have been a problem if you held a FTSE 100 ETF and set a stop-loss that triggered when markets opened, but otherwise not so much. Anyone who held on for a few hours would have seen that loss evaporate. And anyone lucky enough to be able to get a buy order executed during those volatile first few minutes of trading could now be sitting on a 35% gain, vs the 15% achieved by those who simply sat on their hands throughout.
The usual caveats of why invest in the FTSE 100 anyway apply.
Eh? The drop covered 10 months.0 -
dont_use_vistaprint wrote: »No its not academic, just trying to understand how markets, GBP, inflation, base rates are impacted and relate to political factors
That sounds wholly academic to me !!
And to pile all those into the picture (after starting with only Brexit and now its a lot of other factors as well) would cover more than a phD thesis.
My point is, if you are concerned because you have investments in either the 100 or 250, then the issue is, why do you have such a large % investments in either or both of those that you care? Of course, if you dont, and are merely interested in how they move, then indeed, your question is, by definition, academic.0 -
And did you realise the FTSE100 rose in value immediately after the Brexit referendum and is up about 15% since then (including the recent 10% loss)?That was after a 20% drop.Eh? The drop covered 10 months.
Sometimes a picture is worth a thousand words...
Presumably the 20% drop you are referring to is the one that occurred between June 2015 and February 2016. The referendum occurred in late June 2016 by which time that 20% drop was only a ~6% drop from the last market high of June 2015.
So it is incorrect to say "That was after a 20% drop". If you wanted to be accurate, you should have said "That was after a 20% drop and 14% gain", or "That was after a 6% drop".0 -
When you have senior members of a Tory Government going round saying "F**k Business" or going on National TV prattling on about D-Day while ripping up a letter from the CEO of a major investor I think the situation for UK PLC is pretty hopeless...0
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If you wanted to be accurate, you should have said "That was after a 20% drop and 14% gain", or "That was after a 6% drop".
The math is wrong, a 20% drop and then 14% gain is not 6% drop, it's a 8.8% drop. This is because 80% * 114% = 91.2%, not 94%.
In numbers, if you start from £100, a 20% drop would make it £80, but then a 14% gain on the £80 would only make it £91.2, not £94.0
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