FTSE rising whilst prospect of FTA seems to be fading

0779mike

The prospect of a Free Trade Agreement between the UK and the EU seems to be diminishing daily but the FTSE seems to disregard this and continues to rise.
Why is this happening ?  

Albermarle

The usual explanation is that the Pound has been weakening and this benefits a number of the big players in the FTSE 100 .
The Ftse 250 is a better reflection of UK plc and that has gone down today .

Another_Saver

*Ahem* https://youtu.be/TjbQuA5ibgA

Another_Saver

Surprised? Don't be. The stock market has less to do with short term economic news than it does with rainfall.

Thrugelmir

Some UK listed stocks already offer exceptionally good value. Lack of a FTA provides a further upside for some. As is stated on a frequent basis the FTSE is not a representation of the wider UK economy. 

Another_Saver

*although it has correlated over the long term.

DiggerUK

0779mike said:

The prospect of a Free Trade Agreement between the UK and the EU seems to be diminishing daily but the FTSE seems to disregard this and continues to rise.
Why is this happening ?  

The 'stability' of the bourses around the world, not just the FTSE, is divorced from the reality of how the worlds economies really are.

It seems such issues as falling GDP, rising unemployment,  hardly astounding profits in the form of dividends and other alarm bells going off count for nothing......In to that mix we have rising UK house prices whilst pay levels are reduced......sound familiar?

My take is that QE continues to put a new wheel on the wagon to keep things rolling along. Cheap and easy money did the nasty in GFC1 and I believe it's doing the same again. 

Only difference this time if GFC2 breaks cover is the overhang remaining from GFC1, meaning we could have a double whammy and a half to contend with.

QE is a strange beast to get your head around,  best thought of as a never ending, ever increasing 0% CC, but chickens always come home to roost..._

This is from the BOE's spin on QE, almost seems like something from Nigella Lawson.
"QE works by making it cheaper for households and businesses to borrow money – encouraging spending. In addition, QE can stimulate the economy by boosting a wide range of financial asset prices."

Another_Saver

DiggerUK said:

0779mike said:

The prospect of a Free Trade Agreement between the UK and the EU seems to be diminishing daily but the FTSE seems to disregard this and continues to rise.
Why is this happening ?  

The 'stability' of the bourses around the world, not just the FTSE, is divorced from the reality of how the worlds economies really are.

It seems such issues as falling GDP, rising unemployment,  hardly astounding profits in the form of dividends and other alarm bells going off count for nothing......In to that mix we have rising UK house prices whilst pay levels are reduced......sound familiar?

My take is that QE continues to put a new wheel on the wagon to keep things rolling along. Cheap and easy money did the nasty in GFC1 and I believe it's doing the same again. 

Only difference this time if GFC2 breaks cover is the overhang remaining from GFC1, meaning we could have a double whammy and a half to contend with.

QE is a strange beast to get your head around,  best thought of as a never ending, ever increasing 0% CC, but chickens always come home to roost..._

This is from the BOE's spin on QE, almost seems like something from Nigella Lawson.
"QE works by making it cheaper for households and businesses to borrow money – encouraging spending. In addition, QE can stimulate the economy by boosting a wide range of financial asset prices."

Short term yes, long term no. Stock indices tend to lag GDP slightly and two have been strongly correlated (sources and exceptions here: https://forums.moneysavingexpert.com/discussion/6221018/pension-recovery-performance-2020/p18).

Don't forget to short everything and make sure everyone knows the actual apocalypse is coming 

[Deleted User]

Long term yes. 
Alaska was sold for $2.4 million.
Who was wrong? Obviously Russia but, a couple of years later, the bean-counters who would have sold it on for $4 million.
Don't you agree?

DiggerUK

Another_Saver said:

DiggerUK said:

0779mike said:

The prospect of a Free Trade Agreement between the UK and the EU seems to be diminishing daily but the FTSE seems to disregard this and continues to rise.
Why is this happening ?  

The 'stability' of the bourses around the world, not just the FTSE, is divorced from the reality of how the worlds economies really are.

It seems such issues as falling GDP, rising unemployment,  hardly astounding profits in the form of dividends and other alarm bells going off count for nothing......In to that mix we have rising UK house prices whilst pay levels are reduced......sound familiar?

My take is that QE continues to put a new wheel on the wagon to keep things rolling along. Cheap and easy money did the nasty in GFC1 and I believe it's doing the same again. 

Only difference this time if GFC2 breaks cover is the overhang remaining from GFC1, meaning we could have a double whammy and a half to contend with.

QE is a strange beast to get your head around,  best thought of as a never ending, ever increasing 0% CC, but chickens always come home to roost..._

This is from the BOE's spin on QE, almost seems like something from Nigella Lawson.
"QE works by making it cheaper for households and businesses to borrow money – encouraging spending. In addition, QE can stimulate the economy by boosting a wide range of financial asset prices."

.....Don't forget to short everything and make sure everyone knows the actual apocalypse is coming

Those who shorted big in GFC1 made a mint, I've got my ultimate short..._

Thrugelmir

Another_Saver said:

DiggerUK said:

0779mike said:

The prospect of a Free Trade Agreement between the UK and the EU seems to be diminishing daily but the FTSE seems to disregard this and continues to rise.
Why is this happening ?  

The 'stability' of the bourses around the world, not just the FTSE, is divorced from the reality of how the worlds economies really are.

It seems such issues as falling GDP, rising unemployment,  hardly astounding profits in the form of dividends and other alarm bells going off count for nothing......In to that mix we have rising UK house prices whilst pay levels are reduced......sound familiar?

My take is that QE continues to put a new wheel on the wagon to keep things rolling along. Cheap and easy money did the nasty in GFC1 and I believe it's doing the same again. 

Only difference this time if GFC2 breaks cover is the overhang remaining from GFC1, meaning we could have a double whammy and a half to contend with.

QE is a strange beast to get your head around,  best thought of as a never ending, ever increasing 0% CC, but chickens always come home to roost..._

This is from the BOE's spin on QE, almost seems like something from Nigella Lawson.
"QE works by making it cheaper for households and businesses to borrow money – encouraging spending. In addition, QE can stimulate the economy by boosting a wide range of financial asset prices."

Short term yes, long term no. Stock indices tend to lag GDP slightly and two have been strongly correlated

Markets attempt to constantly forecast the future not reflect the past.