The FTSE 100 reflects companies trading mostly in Europe and abroad which is why it is back up. The FTSE 250 reflects stocks in Britain and remains down. (Source BBC)
Ok the kiddies have panicked again today. But not as bad as expected.
Give it a couple of days and all the "experts" will be saying "market oversold, correction gone too far, excellent buying opportunity". And watch the index go back up.
I hope.
Posted above on June 27.
FTSE closed tonight at 6504, that's about 150 points higher than it closed on June 23 (the day of the Brexit vote).
Armegeddon postponed for another couple of weeks I guess. Or at least until the kiddies decide to have another panic.
Ok the kiddies have panicked again today. But not as bad as expected.
Give it a couple of days and all the "experts" will be saying "market oversold, correction gone too far, excellent buying opportunity". And watch the index go back up.
I hope.
Posted above on June 27.
FTSE closed tonight at 6504, that's about 150 points higher than it closed on June 23 (the day of the Brexit vote).
Armegeddon postponed for another couple of weeks I guess. Or at least until the kiddies decide to have another panic.
How's the FTSE 250 going ? What does that pound/USD exchange rate look like ? This "kiddie" is still pretty concerned about the outlook for our economy.
FTSE is getting itself all giddy with excitement that the exit is at worst going to be put back and watered down - at best going to be nullified.
Bearing in mind we are on course to get a remainer running the country, they have good reason to feel that way.
Are we ? If your referring to May I think she's said she won't accept freedom of movement, and Europe have said that won't get us decent access to the free market.
FTSE is getting itself all giddy with excitement that the exit is at worst going to be put back and watered down - at best going to be nullified.
Bearing in mind we are on course to get a remainer running the country, they have good reason to feel that way.
Are we ? If your referring to May I think she's said she won't accept freedom of movement, and Europe have said that won't get us decent access to the free market.
She may be saying things now but this is a leadership election. She will put the economy and health of the country first. There is not way she will compromise access to the single market. Either way - it isn't going to be exactly what people thought they were voting for (no BoJo in sight for one thing, and Farage is redundant.
FTSE is getting itself all giddy with excitement that the exit is at worst going to be put back and watered down - at best going to be nullified.
Bearing in mind we are on course to get a remainer running the country, they have good reason to feel that way.
Are we ? If your referring to May I think she's said she won't accept freedom of movement, and Europe have said that won't get us decent access to the free market.
She may be saying things now but this is a leadership election. She will put the economy and health of the country first. There is not way she will compromise access to the single market. Either way - it isn't going to be exactly what people thought they were voting for (no BoJo in sight for one thing, and Farage is redundant.
If this time last week taught me anything it was not to take the outcome of a vote for granted, I won't make that mistake again.
FTSE not doing too bad is it!! I thought it was meant to plummet rather than do what it always does - plunge for 2 or 3 days while people panic and then come back. I'm glad it's situation normal.
As others have said though the 100 is not a good indicator of our economy. The 250 is still way down. The companies that ha e gained this week are the multinationals, many of them mainly trading in dollars and or ha e their major markets elsewhere in the world.
The bank has already warned of a cut in IRs or possibly more quantitative easing. The danger is very much real and if people still have their fingers in their ears and are just pointing to a small rise in the 100 that everything is fine then they are either a bit dumb and/or very stubborn. Ignoring experts has caused this and to continue ignoring them would be absolutely mental.
FTSE not doing too bad is it!! I thought it was meant to plummet rather than do what it always does - plunge for 2 or 3 days while people panic and then come back. I'm glad it's situation normal.
Yes the FTSE 100 is back and has rebounded, but as many have said on here its not the best indicator of our economic outlook. The FTSE 250 is a much better indicator (mainly UK companies) and is down and remains down. More worrying to me is the exchange rate, the £ continues to fall against the $ and Euro. Already fuel prices have gone up (in my area) and food prices are likely to increase, holiday travel money to Euro zone and USA has decreased. We still need to see the position after a few months, but early indicators are not looking good. If interest rates are lowered again, (they are only at 0.5% now) then savers will see less returns, fuel will continue to rise as the £ falls further.
Yes the FTSE 100 is back and has rebounded, but as many have said on here its not the best indicator of our economic outlook. The FTSE 250 is a much better indicator (mainly UK companies) and is down and remains down. More worrying to me is the exchange rate, the £ continues to fall against the $ and Euro. Already fuel prices have gone up (in my area) and food prices are likely to increase, holiday travel money to Euro zone and USA has decreased. We still need to see the position after a few months, but early indicators are not looking good. If interest rates are lowered again, (they are only at 0.5% now) then savers will see less returns, fuel will continue to rise as the £ falls further.
FTSE 250 is down, but not by a huge amount. If it continues to drop back to levels of 5 years ago then it's a big concern.
If many companies in the 250 export and the £ is weakened, things may look up for many of them.
Further still, if trade agreements over the coming years have a global outlook and smaller businesses can trade more freely with countries outside the EU, they may then perform better still.
As for holidays, it should mean a great boost to UK tourism if Brits look to holiday here and foreign tourists have more money to spend due to the exchange rate.
Our over reliance on fuel needs to be tackled and this should mean greater investment in renewable technologies that are greener. We should be investing in the future, investing in a network of car charging points and helping people buy electric cars. The more we can move away from fuel at the pump the better.
For every negative one person sees, there's an opportunity for another. Rather then dwelling on what we may have lost, people need to look at the opportunity and what we can gain.
Yes the FTSE 100 is back and has rebounded, but as many have said on here its not the best indicator of our economic outlook. The FTSE 250 is a much better indicator (mainly UK companies) and is down and remains down. More worrying to me is the exchange rate, the £ continues to fall against the $ and Euro. Already fuel prices have gone up (in my area) and food prices are likely to increase, holiday travel money to Euro zone and USA has decreased. We still need to see the position after a few months, but early indicators are not looking good. If interest rates are lowered again, (they are only at 0.5% now) then savers will see less returns, fuel will continue to rise as the £ falls further.
... For every negative one person sees, there's an opportunity for another. Rather then dwelling on what we may have lost, people need to look at the opportunity and what we can gain.
Lots of 'our this ,we that' in your post SLL, culminating in your last paragraph. If you allow for a moment the idea that real lives of individual people are at the centre of their own experience and the 'our' and 'we' is not actually how it works for most people most if the time, you might be able to appreciate that it's not so simple as 'being positive' about all this.
Most people working are on employment contracts, PAYE earners, others unemployed, some unemployable for various reasons. Not so many Richard Bransons, Alan Sugars amongst us who can do anything about creating the bright new future you portray.
Your positivity is nothing but wishful thinking. A dose of realism is needed in your perspective.
Yes the FTSE 100 is back and has rebounded, but as many have said on here its not the best indicator of our economic outlook. The FTSE 250 is a much better indicator (mainly UK companies) and is down and remains down. More worrying to me is the exchange rate, the £ continues to fall against the $ and Euro. Already fuel prices have gone up (in my area) and food prices are likely to increase, holiday travel money to Euro zone and USA has decreased. We still need to see the position after a few months, but early indicators are not looking good. If interest rates are lowered again, (they are only at 0.5% now) then savers will see less returns, fuel will continue to rise as the £ falls further.
Our over reliance on fuel needs to be tackled and this should mean greater investment in renewable technologies that are greener. We should be investing in the future, investing in a network of car charging points and helping people buy electric cars. The more we can move away from fuel at the pump the better.
Aah yes. More electric cars. It will happen. But with our aging and soon to be decommissioned power stations and Hinckley C looking ever-more unlikely, I wonder what will happen to the grid when we all get home from work and plug our cars in to re-charge? In any event, as at 2015 30% of our electricity was still produced by burning imported gas.
But, perhaps more worryingly, the UK electricity network is connected to systems in France, the Netherlands and Ireland. The UK uses these to import or export electricity when it is most economical. In 2015, the UK was a net importer from France and the Netherlands with net imports of 13.8 TWh and 8.0 TWh respectively which accounted for 5.8 per cent of electricity supplied in 2015. Total net exports to Ireland amounted to 0.9 TWh. Now how's that going to go with no trade agreements for 9 years or whatever and having to pay in Euros?
Yes the FTSE 100 is back and has rebounded, but as many have said on here its not the best indicator of our economic outlook. The FTSE 250 is a much better indicator (mainly UK companies) and is down and remains down. More worrying to me is the exchange rate, the £ continues to fall against the $ and Euro. Already fuel prices have gone up (in my area) and food prices are likely to increase, holiday travel money to Euro zone and USA has decreased. We still need to see the position after a few months, but early indicators are not looking good. If interest rates are lowered again, (they are only at 0.5% now) then savers will see less returns, fuel will continue to rise as the £ falls further.
FTSE 250 is down, but not by a huge amount. If it continues to drop back to levels of 5 years ago then it's a big concern.
If many companies in the 250 export and the £ is weakened, things may look up for many of them.
Further still, if trade agreements over the coming years have a global outlook and smaller businesses can trade more freely with countries outside the EU, they may then perform better still.
As for holidays, it should mean a great boost to UK tourism if Brits look to holiday here and foreign tourists have more money to spend due to the exchange rate.
Our over reliance on fuel needs to be tackled and this should mean greater investment in renewable technologies that are greener. We should be investing in the future, investing in a network of car charging points and helping people buy electric cars. The more we can move away from fuel at the pump the better.
For every negative one person sees, there's an opportunity for another. Rather then dwelling on what we may have lost, people need to look at the opportunity and what we can gain.
And where your point falls down is investment. Do you really think companies here will be desperate to invest in R&D for renewables given the current outlook?
Yes the FTSE 100 is back and has rebounded, but as many have said on here its not the best indicator of our economic outlook. The FTSE 250 is a much better indicator (mainly UK companies) and is down and remains down. More worrying to me is the exchange rate, the £ continues to fall against the $ and Euro. Already fuel prices have gone up (in my area) and food prices are likely to increase, holiday travel money to Euro zone and USA has decreased. We still need to see the position after a few months, but early indicators are not looking good. If interest rates are lowered again, (they are only at 0.5% now) then savers will see less returns, fuel will continue to rise as the £ falls further.
... For every negative one person sees, there's an opportunity for another. Rather then dwelling on what we may have lost, people need to look at the opportunity and what we can gain.
Lots of 'our this ,we that' in your post SLL, culminating in your last paragraph. If you allow for a moment the idea that real lives of individual people are at the centre of their own experience and the 'our' and 'we' is not actually how it works for most people most if the time, you might be able to appreciate that it's not so simple as 'being positive' about all this.
Most people working are on employment contracts, PAYE earners, others unemployed, some unemployable for various reasons. Not so many Richard Bransons, Alan Sugars amongst us who can do anything about creating the bright new future you portray.
Your positivity is nothing but wishful thinking. A dose of realism is needed in your perspective.
When I say "we" I don't actually mean me & you personally. My post is another perspective. It was meant to be a wishing thinking against a doom thinking post. The outcome may lie in the middle or either end of the spectrum.
Nobody knows. But continual pessimistic thinking won't help anyone.
The price of listed shares has been supported to high values since 2008 by very low interest rates and quantities easing.
Unfortunately this is regressive because those who have large pension pots invested in shares or the even more wealthy who have large share portfolios at we'll do disproportionately well, as do those with large mortgages.
Kerching. 10% rise in a week. Sell now and wait for the next big dip.
Exactly. Thats my 6500 sell level breached. Will sell tonight ( assuming my crap iPad is up to the task) and buy back when it tanks below 5500. (SIPP maybe at 5700) Expect that before year end although no idea exactly when or why. Events, dear boy, events, who was it said that?
The price of listed shares has been supported to high values since 2008 by very low interest rates and quantities easing.
Unfortunately this is regressive because those who have large pension pots invested in shares or the even more wealthy who have large share portfolios at we'll do disproportionately well, as do those with large mortgages.
Better off chucking money out of helicopters.
I wouldn't be surprised to see a party giving Friedman's theory a try soon. Promising to give every citizen £10,20,30k is going to win an election for someone. Not sure how well it will work after the hangover sets in though.
Freedom of movement as an ideology is deeply flawed. In theory the entire population of the EU, just short of a billion people could turn up on our doorstep, or Germany, France and demand entry. It has been sanctioned by Brussels but is not a policy that stands up to any scrutiny. There must be some quotas. Without this there would be no out verdict. A Labour wanabee should negotiate this with Merkyl and fight an election on a remain ticket.
The population of the EU is 508 million. We have had the free movement of goods, services, capital and people since 1973 and net migration was 50,000 a year last century. Recently it has risen to 300,000 but is set to go back down to 200,000.
The fact is that only 1% of the EU population move regions within their country each year, let alone move country. And only 4% of EU citizens move countries in their lifetime.
The whole of Sheffield, Hull and Newcastle could move to London overnight but they don't because of the cost of living and they need a job or a serious wad of cash to make it work.
In the the US which is fully formed single currency zone, California and the East coast are popular but people live in all 50 states.
In theory the whole of SE London could move to Paris this weekend but it's not happening and it's nonsense.
The EU have made it clear that the four freedoms are indivisible. Over the next six months the debate will hopefully mature and the politicians will choose to go for WTO, Norway model perhaps followed by another vote to let people decide between the chosen option or to retain the status quo.
As people are beginning to notice nothing changes if we go with EEA and nothing happens until the Prime Minister invokes Article 50...and that's if s/he does. Some are predicting this might happen in Q4, but if this happens and the Treasury model is right then next years budget will be savage to maintain credibility.
Unless Osborne starts reading up on Keynes and uses record low rates to spend a wedge on infrastructure and jobs - who knows?
The best idea right now is to kick the can down the road and keep kicking! Farage will moan but so what - he's not even an MP and he's unlikely to have any impact on the new administration.
Hopefully we will move beyond the days of the tail wagging the dog but I won't hold my breath.
As for why the FTSE is back and where it goes? No idea but we should look at the whole picture in a few months and a year. At that point we will see what path is taken as well as the full scale of BoE intervention this last week.
One thing is that long term guilts are down to record rates - some negative even. A shame for all those old people who voted leave
Kerching. 10% rise in a week. Sell now and wait for the next big dip.
Exactly. Thats my 6500 sell level breached. Will sell tonight ( assuming my crap iPad is up to the task) and buy back when it tanks below 5500. (SIPP maybe at 5700) Expect that before year end although no idea exactly when or why. Events, dear boy, events, who was it said that?
Prague are you a politician by any chance you was betting 5800 by end of Monday
Kerching. 10% rise in a week. Sell now and wait for the next big dip.
Exactly. Thats my 6500 sell level breached. Will sell tonight ( assuming my crap iPad is up to the task) and buy back when it tanks below 5500. (SIPP maybe at 5700) Expect that before year end although no idea exactly when or why. Events, dear boy, events, who was it said that?
Prague are you a politician by any chance you was betting 5800 by end of Monday
No mate. I didnt bet anything. I never bet. I only forecast it. No money involved, just an opinion. It went to 5908 if I recall. I didnt expext this big a rally but since it has happened, I will try to take advantage. I didnt vote for this shit, but if I can profit from it, I will. I just feel sorry for those who dont have the luxury of doing this. They were sold a fairy tale of a better life. Meanwhile people like me may or may not make a little bit. And Peter Hargreaves, the bloke who owns the investment web platform little people like me use, and who funded the Brexit campaign, will have made a shed load, because in his world, "insecurity is good".
Ever had the feeling you've been done like a kipper?
Comments
FTSE closed tonight at 6504, that's about 150 points higher than it closed on June 23 (the day of the Brexit vote).
Armegeddon postponed for another couple of weeks I guess. Or at least until the kiddies decide to have another panic.
Bearing in mind we are on course to get a remainer running the country, they have good reason to feel that way.
The bank has already warned of a cut in IRs or possibly more quantitative easing. The danger is very much real and if people still have their fingers in their ears and are just pointing to a small rise in the 100 that everything is fine then they are either a bit dumb and/or very stubborn. Ignoring experts has caused this and to continue ignoring them would be absolutely mental.
I wonder if you just see what you want to see.
If many companies in the 250 export and the £ is weakened, things may look up for many of them.
Further still, if trade agreements over the coming years have a global outlook and smaller businesses can trade more freely with countries outside the EU, they may then perform better still.
As for holidays, it should mean a great boost to UK tourism if Brits look to holiday here and foreign tourists have more money to spend due to the exchange rate.
Our over reliance on fuel needs to be tackled and this should mean greater investment in renewable technologies that are greener. We should be investing in the future, investing in a network of car charging points and helping people buy electric cars. The more we can move away from fuel at the pump the better.
For every negative one person sees, there's an opportunity for another. Rather then dwelling on what we may have lost, people need to look at the opportunity and what we can gain.
Most people working are on employment contracts, PAYE earners, others unemployed, some unemployable for various reasons. Not so many Richard Bransons, Alan Sugars amongst us who can do anything about creating the bright new future you portray.
Your positivity is nothing but wishful thinking. A dose of realism is needed in your perspective.
But, perhaps more worryingly, the UK electricity network is connected to systems in France, the Netherlands and Ireland. The UK uses these to import or export electricity when it is most economical. In 2015, the UK was a net importer from France and the Netherlands with net imports of 13.8 TWh and 8.0 TWh respectively which accounted for 5.8 per cent of electricity supplied in 2015. Total net exports to Ireland amounted to 0.9 TWh. Now how's that going to go with no trade agreements for 9 years or whatever and having to pay in Euros?
Nobody knows. But continual pessimistic thinking won't help anyone.
bbc.co.uk/news/uk-politics-eu-referendum-36678222
Meanwhile, bbc.co.uk/news/business-36680572
Unfortunately this is regressive because those who have large pension pots invested in shares or the even more wealthy who have large share portfolios at we'll do disproportionately well, as do those with large mortgages.
Better off chucking money out of helicopters.
Levels of inward investment in the UK in the meantime would be interesting to see.
The fact is that only 1% of the EU population move regions within their country each year, let alone move country. And only 4% of EU citizens move countries in their lifetime.
The whole of Sheffield, Hull and Newcastle could move to London overnight but they don't because of the cost of living and they need a job or a serious wad of cash to make it work.
In the the US which is fully formed single currency zone, California and the East coast are popular but people live in all 50 states.
In theory the whole of SE London could move to Paris this weekend but it's not happening and it's nonsense.
The EU have made it clear that the four freedoms are indivisible. Over the next six months the debate will hopefully mature and the politicians will choose to go for WTO, Norway model perhaps followed by another vote to let people decide between the chosen option or to retain the status quo.
As people are beginning to notice nothing changes if we go with EEA and nothing happens until the Prime Minister invokes Article 50...and that's if s/he does. Some are predicting this might happen in Q4, but if this happens and the Treasury model is right then next years budget will be savage to maintain credibility.
Unless Osborne starts reading up on Keynes and uses record low rates to spend a wedge on infrastructure and jobs - who knows?
The best idea right now is to kick the can down the road and keep kicking! Farage will moan but so what - he's not even an MP and he's unlikely to have any impact on the new administration.
Hopefully we will move beyond the days of the tail wagging the dog but I won't hold my breath.
As for why the FTSE is back and where it goes? No idea but we should look at the whole picture in a few months and a year. At that point we will see what path is taken as well as the full scale of BoE intervention this last week.
One thing is that long term guilts are down to record rates - some negative even. A shame for all those old people who voted leave
Ever had the feeling you've been done like a kipper?