I said on several occasions last year that the FTSE was overvalued.
I suggested here that a value in excess of 2900 was irrational.
Today it hit 3,625, a 6 year low.
So that’s still a ‘sell’ then, in my back.
Although I quit at 6,000 +, more than a year ago. And I did say that was what I recommended others do at the time. Did anyone listen?
I hope you sold the market short and made a killing.
I know someone who came to the Labour Land Campaign fringe meeting in 2007 and on the strength of our message sold her house in Maidenhead and (not our doing) put the proceeds in gold and euros!
Interesting – any ideas about house prices?
Re house prices: they have a long way to fall, of course – the recession will see to that. The stats for house prices, adjusted for inflation, since 1952 are amazing, indicating a massive correction. There will be undershooting. The underlying trend shows growth matching GDP, probably matching rental values. Land value taxation is based on the annual rental value of land – which is by definition an unearned surplus. See http://www.labourland.org/downloads/papers/HousingCrisisPaper.pdf.