Just reported: the FTSE is closing the year at a record all time high. It a bugger that Brexit isn't it..
Britain has secured more than £15 billion of extra foreign investment since EU referendum Some good advice in this piece for those who wished to remain: Steve Baker MP, said: "Investors can see the UK will be a global leader in opportunity, enterprise and human flourishing. The sooner downbeat commentators accept current facts and future possibilities, the happier and more prosperous we will all be." Now whilst that still may be a slightly optimistic statement , i do wholeheartedly believe in the notion that the more positive thinking our country is the better we'll do out of all of this. Doom and gloom does nothing but continue to fan the flames, as such its those people who walk around worrying all the time actually doing most harm, ironic isn't it. Too many people wishing that things fail just so they can 'i told you so', when in reality they'll be just as hindered by negative actions and vocals. Now then, you can continue to cry over split milk as long as you want, bt at some point you've got to grow a pair and back the government and the campaign to leave if we're to really benefit from all of this. We NEED to be out in its entirety for us to be able to strike the best possible rest of the world trade deals, not hanging on to Brussels coat tails
It is, but what is pushing it high and is that a good thing ? I feel a "correction" is needed and is just around the corner. I hope. The risk is that without regular small corrections we build up stress that results in a big one when it eventually does let go, similar to what happened after Crash Gordon abolished boom and bust, and look how that ended.
Just out of interest and I don't know the answer to this, I'm just asking...........how many of the FTSE top one hundred are foreign/European companies?
I think the ftse 100 companies are around the 54% foreign owned. This should not be seen as a bad thing however as most countries who run stock exchanges tend to have a high level of overseas owners of their top companies. The multinationals in the top 100 are a good guide mark to how Britain is seen internationally and in that, we are constantly seen as a good place to be. A better benchmark for how Britain is doing itself is the ftse 250 which tends to be more domestic rather than multinationals.
Which is why I asked the question. I wanted to know how we were seen globally and how we were performing.
I'll just cut the duke off at the pass then. It looks like the FTSE250 has been steadily rising and is higher than it was this time last year, despite the temporary dip; post Brecit result. If fact, look at it's performance over the last 5 years. Wow. Crash, my arse. :Hilarious:
Isn't one of the main reasons the stock market has risen, due to the fact that they earn most of there money in foreign currency and because the pound has dropped there profits and share value have gone up. Steve
Yes and the fact the drop in the pound makes it cheap to buy UK shares and it's better to have sterling invested in shares where it will gain value rather than lose it if invested in sterling currency.
So I assume that when Article 50 is signed, you think the pound will drop even further? Therefore UK shares will be cheap to buy and they will gain value. Right? But you are quoted as saying that once Article 50 is signed, the stock market will crash. Which is it?
Not the main reason no. The stockmarket is like a giant bookies, it's as much about confidence now and in the future. On that basis Britain does well now, in the throws of Brexit and will probably do very well afterwards even more so given the huge problems presenting themselves to the european union. The doom and gloom merchants, you know who they are would try and have you believe "o look the pound is going down, we are doomed" The night of the vote, the pound was artificially inflated to around $1.40 so the drop seems steeper than it actually was. The benefit of the pound being lower is that our goods are suddenly selling like hotcakes overseas meaning as a country we are making more money through smaller margins but a lot more of them. That reflects in the ftse 100 and 250 and the graphs showing that positive.
We haven't et seen the downside to a low pound though. That will be seen in the coming months with rising inflation.
An interesting site this (and factual) Historical Exchange Rates | UKForex Foreign Currency Exchange Ran the daily £ vs € rates from 30/12/2008 until today 30/12/2016 The average across the entire 8 year spread is 1.21. Today's rate is 1.17 and isn't particularly low, it is in fact more in line with the majority of the last 8 years, only the latter 6 months of 2014 and all of 2015 skew the data due to a climb In fact, if you run the daily data from the same starting point (30/12/2008) and up until 30/12/2014 prior to the major climb In 2015, do you know what the average is daily? 1.18 vs today's rate of 1.17 So in reality barely any difference against the euro Interestingly the £ vs $ across the last 8 years comes out as 1.55 as an average and so that's where the biggest losses are, hence why the FSTE is doing so well as most trade in USD and that currently buys them more 'bang for buck' as today's rate is 1.24, some 20% lower than the past 8 year average. So there you go, currency.....it isn't all bad
