Is the FTSE 100 about to hit a record high?

agent69

The FTSE 100 closed at 7844 today, about 35 points lower than its all time closing high. Are we going to see an all time high on Monday?

I recall several years ago people complaining about how the dinosaur stocks in the FTSE couldn't hold a light to the high tech stocks in the main American indices. While this may be true over the longer term, it does appear that FTSE has them beat over the last 12 months. Is this part of the brexit bonus we have been told about, or is there another reason?

Brie

is the market open tomorrow?  

wmb194

*Monday. It's due to the index's composition and what's done well in the last year e.g., energy, commodities, some of the banks, Astra Zeneca is a large component and has done very well. They started out relatively cheap relative to the US as well - US tech valuations at the beginning of last year were bonkers. There must be an analysis out there somewhere.

masonic

Don't forget about the dividends. It's one of the reasons the index value grows more slowly than it's peers. On a total return basis it is at an all-time high.

It is a strange index made up of global companies who happen to be listed on the London Stock Exchange, and disproportionately belong to certain sectors that happen to have been resilient to recent headwinds. That doesn't however negate its marked underperformance since about 2015. The FTSE 250 is often considered a better measure of the UK economy, and it has proven a better investment for UK investors, not entirely due to the small-cap risk premium I'd venture, but has had a pretty awful 2022.

agent69

Brie said:

is the market open tomorrow?  

Guess I better change it to Monday!

InvesterJones

agent69 said:

Is this part of the brexit bonus we have been told about, or is there another reason?

How's the economy looking? Stock market != economy.

agent69

3 weeks later finally achieves all time high

C_Mababejive

Surely people will not buy into it on a high as it has too much potential downside?

dunstonh

C_Mababejive said:

Surely people will not buy into it on a high as it has too much potential downside?

What downside is that?   Remember its only a bit higher than what it was over 20 years ago.

mark5

dunstonh said:

C_Mababejive said:

Surely people will not buy into it on a high as it has too much potential downside?

What downside is that?   Remember its only a bit higher than what it was over 20 years ago.

You could argue its been undervalued for a while, the relatively weak pound has probably helped attract overseas investors more recently too.

People slate it but with the dividends its not such a bad investment. 

jimjames

C_Mababejive said:

Surely people will not buy into it on a high as it has too much potential downside?

In that case you'd never buy anything high as it could always go lower. Or higher.