So the FTSE100 breaks back-through the 6,000 barrier on the upside. This is good news. As usual, we can’t say that it is permanent nor a ‘dead cat bounce’. That’s a ‘mere’ 23% higher than the recent low.
So at time of writing, the Dow Jones’ index has bounced 29% from its lowest point (technically a Bull Market when over 20%), the FTSE100 by 19% and the FTSE250 (more UK-centric) by 20.5%
The FTSE100 has struck a yield of over 7%, the highest for some forty years (what does that mean…) and this without ‘any’ inflation so historically much more significant now.
I was reminded of the Restaurant Critic’s comments in “Ratatouille” (my favourite film). What he said was ‘what we need is a little perspective’. That is what we need now.
According to some calculations, last year the US Market enjoyed the biggest splurge of liquidity for fifty years. It is sloshing around the rest of the Globe with global indices registering their sixth best year on record
US companies bought-in and cancelled $736billion of shares, reducing supply and squeezing prices ever higher and some may say cynically the Executive bonuses which so often are awarded in stock options
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