Reply to: FTSE at 10,000 by end of year?

[_V_]

Yep, the FTSE100 is full of duff plodders that have very ordinary long term growth prospects - there's a reason Apple alone was recently worth more than the entire index.

Replace FTSE100 with CUK General Forum and you are still spot on.

[GigiBronz]

It is in line with my prediction of drones hovering over London delivering caviar and poor people hunting rats with bows in the slums.

A tale of two cities. To the moon with the stock market!

[edison]

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.

Yep, the FTSE100 is full of duff plodders that have very ordinary long term growth prospects - there's a reason Apple alone was recently worth more than the entire index.

[GJABS]

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

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

[scooterscot]

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

[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.

[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.

[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...

[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.

[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.

[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

[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.

[ladymuck]

Which year?

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

[AtW]

My prediction -FTSE 100 7500 by Christmas

Which year?

[Andy2]

My prediction -FTSE 100 7500 by Christmas