The FTSE at 6,000 makes no sense

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To have the FTSE at near enough 6,000 yesterday makes no sense to me. The last time it was at this level – and the graph shows when that was – I said so and I was right.

So I’ll say it again: this makes no sense:

Now I know we have to view things in the round, but let’s not put too fine a point on it and say our economy remains in profound difficulties, largely as a result of government policy. Growth is stumbling at best, unemployment is up and clearly heading much higher, government borrowing is ahead of expectations despite the mantra of cuts, tax revenue growth is weak, and that’s before a massive hit in consumer confidence in the New Year from a VAT rise and the real impact of cuts begins to hit.

In that case it is hard to justify the FTSE being at 6,000 for any fundamental reasons.

The words “speculative” and “bubble” come to mind. And we all know what those lead to.

PS This just confirms my opinion - also in the FT today