7000 today?

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Discussion

megaphone

Original Poster:

10,694 posts

250 months

Wednesday 25th February 2015
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FTSE could hit 7000 soon!! Finally! Will it stay above there though? Or is this another 'boom' before a bust.

DonkeyApple

54,923 posts

168 months

Wednesday 25th February 2015
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It's almost inevitable. Humans love round numbers so there is almost a magnetic pull towards, then a sell off back under as we panic at the stupidity of our actions, then we do it again, then we sell it down again and by the third time we do it we are so ashamed and disgusted we just keep buying it and slap it well beyond so we can pretend we never behaved like such simple fools. biggrin

trading for round numbers is like shagging a munter when drunk. It happens but no one admits it and everyone's ashamed of it.

K12beano

20,854 posts

274 months

Wednesday 25th February 2015
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DA - aren't you forgetting "history"?

It didn't get there in 1999/2000. Why would it do so today?

DonkeyApple

54,923 posts

168 months

Wednesday 25th February 2015
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K12beano said:
DA - aren't you forgetting "history"?

It didn't get there in 1999/2000. Why would it do so today?
Apple and oranges. wink

Back in 99 the FTSE was a growth telco index sucking up cash from the tech boom, then it reinvented itself and became a financial index until 2007 when it reinvented as a commodity index.

The FTSE of today bears little resemblance to the FTSE of 1999.

Declining commodity investment is what has stopped the FTSE from chasing up with the other Western indices but the inherent yield of the FTSE is still superior to other asset classes so the money is still flowing in and when there is a lull in the panic over resource stocks it'll chase the others up.

Add to this the market probably thinking rate hikes are going to be pushed further out this week then arguably is oil doesn't weaken again then odds favour it happening.

However, we are in divi season so the index is going to have a chunk taken off it tonight so unless the mRket is strong it may not go through and hold this week.