9 Mar 2016

FTSE 100 - NOT amateur radio

The FTSE 100 ended the day up 0.34%. I am still expecting large falls but so far this has not happened. Sentiment is pushing it higher but reality should push it well down.

I can't help thinking we are living in a parallel universe where reality does not apply.

With all the debt and uncertainty in the world, I think those who invest in the companies listed in the FTSE 100 are living their lives with their eyes and ears closed. At some point, reality will set in and the brown stuff will hit the fan big time and all hell will let loose. At some point, the world faces a MASSIVE re-adjustment and no-one will be immune.

Growth cannot continue in a world with limited resources. Also, living on debt cannot go on for ever. When interest rates are very low it may make sense, but what happens when these rise? China is a real danger and so apparently is Japan. 

2 comments:

G1KQH said...

You cannot stop greed!

73 Steve

Hugh said...

The Euro has been one big Ponzi scheme since 2009 but no one wants to cry wolf, so it has just been getting bigger. The ECB is injecting Euros at a now amazing 80bn Euro per MONTH with QE (printing money) to try to inflate out of this problem, but German strong exports have prevented the much-waited for inflation, which will de-value the massive debt. Japan and China have similar tactics. What a sorry mess. We are indeed heading for a massive bubble burst with all the social problems. Massive parallels to what happened globally in 1930's.. worth reading up about! The trigger will be debt liquidation (bank runs) after which it all falls apart. Draghi is desperately trying to inflate out, but it is too late. It didn't need to end this way, bad macro economics and too much can-kicking instead of tough decision making G6AIG