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Title: FTSE hits 2009 high Post by: James Cormack on August 24, 2009, 12:54:19 PM London's FTSE 100 index has hit a 2009 high of 4900 for the first time since October.
This is fascinating viewing for anyone interested in the behaviour of crowds and bull markets - just look at the effect optimism can have. When you read posts like this (http://www.ft.com/cms/s/0/a3a65770-9073-11de-bc99-00144feabdc0.html?nclick_check=1), think about the way human emotions influence real change in the worldwide economy. Anyway, what views do you take on this development? I personally expect this rally will die down and its individual significance will probably be exaggerated - but it's certainly a small link in a large chain that is pulling us towards recovery. Title: Re: FTSE hits 2009 high Post by: Kostja on August 28, 2009, 10:43:21 AM I've read one article recently about this. Too bad I can't find it anymore.
The author's main idea there was, that all this bulls market taking place on the world's market is the consequence of fiscal stimulus (quantitative easing in UK's case). A huge part of liquidity injected in the economy is being used to buy shares. The author also makes the point, that all this is going to stop pretty soon (in couple of months are so), because it looks like quite a few countries will be contracting the stimulus shortly. ;) |