Posts from — December 2008
So a turbulent 2008 comes to an end. Nevertheless I hope many of you have enjoyed a profitable period range trading the FTSE 100. The index has been rather consistent of late. No doubt that will change in the New Year.
But before we see you next year, a little present for you. It might be one you have had already but we like to recycle and some of this comedy gold is too good not to re-use (or gift).
During the US Elections we created a page of Political Quotes and Videos that became one of our most popular pages…from:
“They are also building schools for the Afghan children so that there is hope and opportunity in our neighboring country of Afghanistan”, Sarah Palin, 2008
“My plan reduces the national debt, and fast. So fast, in fact, that economists worry that we’re going to run out of debt to retire”, George W. Bush, 2001
The markets suddenly seem to be feeling a tad cold as traders start to shut down for the holiday period. I understand that most trading floors have closed their books and are merely rolling over existing business with virtually no new position taking being contemplated.
It is to be hoped that this is just the usual year end shutting up shop and that come the New Year activity will rebound.
Unfortunately there is a slight feeling that the bright new era of massive State packages coupled with massive private indebtedness will prove to be not much different to the current dire situation but without one crucial element. Hope.
The next decade (and when I say decade that is what I mean) is likely to be blighted with high taxation and increasing State borrowing requirements. Even the Chancellor was unable to be more positive than ‘around 2014/15′ for a return to a more respectable annual debt level, but this will of course be on top of the huge obligation built up between now and then. If a politician is saying 2014/15 he probably means 2017/18.
This may well prove to be disastrous for anyone working over the next 20 to 30 years (ie nearly everyone) as the chances of putting away a little something for retirement and have that ‘little something’ actually increase in real value will be minimal.
Volumes are very weak today with no real impetuous for bulls or bears to grab on to. The weakness in the pound is contributing to the strength in the FTSE 100 versus other indices as most of the revenue earned by the constituent members and most of their business takes place in foreign currencies and on foreign soil.
Read more of today’s Spread Trading comment.