The national debt is getting bigger. We are running out of fuel. Inflation is above BOE comfort levels. Ever more high street shops and small companies are going bust. Get the idea?
The FTSE closed at a five year high today. Investors really are disconnected from the real economy. They think that the value of companies will just go up and up.
Where have I heard this before? And not that bleedin long ago either.
I agree and it will all end in tears when more bad news comes along and it drops to 5500 or so again. People and pension funds are investing as the dividend returns are higher than they are for bonds and savings accounts, but also because, apart from index based gilts they are perceived a better hedge against deliberate Government currency debasement through inflation and so it has become fashionable to keep your savings in this way.
But they may well get their fingers burnt here and make big losses and the FTSE is still lower than 1999, due to 10 years of Labour misrule and the current depression. So when it drops it may well be for a long period again due to the UK's and the EU's poor economic fundamentals. Personally, if I had money to invest and I don't currently, I would not invest under any circumstances in Europe and would probably look at a punt in emerging markets as at least they have growth and growth prospects.
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Topic: Who do they think they're kidding? (Read 1170 times)