Oct 212010
I note the FTSE is at a near high for the year this morning.
The market loves cuts.
They are idiots. You cannot make money in any business without selling your products. George Osborne sucked demand out of the economy yesterday and yet the market is celebrating. Profits must fall, and yet the market has gone up.
I’ve said it before, and I will no doubt say it again: those who speculate in the city clearly have no idea what they are doing.
7 Responses to “The market likes it”
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Gamblers appreciating a fellow gambler.
“I’ve said it before, and I will no doubt say it again: those who speculate in the city clearly have no idea what they are doing. ”
Yet in other posts you say that the bond market clearly feels that we are not on the verge on bankruptcy?
Perhaps you should also note how much profit the FSTE generates from the UK, and how much is global?
@Greg
The vast majority are UK registered companies – so most will ultimately be UK profit – even under the new rules
@Richard Murphy
Actually Sterling is under very serious pressure this morning.
Does that mean that currency traders are idiots too?
Sorry, but you’ve misunderstood my point. Most of the profit of FTSE 100 companies is generated outside of the UK, and therefore is not massively reliant on the UK economy. HSBC, Vodafone, BP and Shell (to name the current 4 largest members of the FTSE) do not generate most of their profit in the UK.
@Greg
How do you know
we don’t have country-by-country reporting
Well, I think it’s fairly safe to assume that given their global nature and the size of the UK population that Vodafone etc do not generate the largest part of their revenue from UK customers.
The FTSE 100 is generally a pretty terrible indicator of the state and future direction of the UK economy. GBP and perhaps the gilt market are much better indicators.