FTSE at 10,000 by end of year?

[ladymuck]

Which year?

That's not a constructive question. What kind of prediction would it be with that level of detail?

[jamesbrown]

The FTSE 100 is a dog of an index with crappy sectoral biases. Whatever else is booming, you can be sure the FTSE will be half-booming relative to that.

[AtW]

The FTSE 100 is a dog of an index with crappy sectoral biases. Whatever else is booming, you can be sure the FTSE will be half-booming relative to that.

Half-BOOM is better than half-DOOM

[GJABS]

The FTSE100 was at 7500 at the beginning of the year before Covid hit. So with the vaccine announced today I see no reason why it won't return there soon.
Add to the mix the stimulus and money printing the Bank of England has been doing this year, inflation is IMHO due to rise, and the FTSE will tend to rise with it as its constituent companies find themselves able to raise prices.

[GJABS]

The FTSE 100 is a dog of an index with crappy sectoral biases. Whatever else is booming, you can be sure the FTSE will be half-booming relative to that.

It has been a dog of an index (it is no higher today than it was 20 years ago). However it is IMHO now a good investment because everyone thinks it is a dog - this causes it to be undervalued.

[AtW]

It has been a dog of an index (it is no higher today than it was 20 years ago). However it is IMHO now a good investment because everyone thinks it is a dog - this causes it to be undervalued.

A dog with fleas...

[jamesbrown]

It has been a dog of an index (it is no higher today than it was 20 years ago). However it is IMHO now a good investment because everyone thinks it is a dog - this causes it to be undervalued.

Everyone thinks it's a dog because it is a dog. Banks, miners, energy, meh.

[GJABS]

Everyone thinks it's a dog because it is a dog. Banks, miners, energy, meh.

A lot of these companies have large amounts of debt. Inflation will reduce the value of these debts, leading to higher profits.
Energy companies are defensive against recession.

[scooterscot]

And of deflation comes instead, what happens to those companies?

[GJABS]

And of deflation comes instead, what happens to those companies?

They go bust. Or bailed out by the government more likely.