In March I wrote suggesting that the FTSE was seriously overvalued at over 6,000.
Inevitably the cynics said I was wrong.
The market went to 6,800.
And now? Look at this:
QE is unwinding.
China is unravelling.
Carbon is massively overvalued on FTSE balance sheets.
Austerity is guaranteeing recession for years to come.
Of course I could be wrong about 6,000 being too high. But I don't think so.
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As Ross Clark in the latest Spectator says
(1) Government expenditure is rising in real terms not falling
(2) At 42.2% of GDP Government spending is higher even than when we needed an IMF bailout in 1976 (39.8%).
We are broke. And getting broker.
SELL.
And what would you wish for? People dying in the streets?
Ala Monty Python – “Tis but a scratch”
http://youtu.be/dhRUe-gz690?t=2m50s
I really have to wonder what needs to happen before the UK starts to go against it’s austerity drive (it’ll be tough to use the FTSE 100 as evidence of success now). Though if recent releases are any indication (BIS report) then truthiness will continue to lead the way.