If the global economic prospects are terrible, why does the stock reach the highest new?
Or in other ways, what will be done by equity if US President Donald Trump loosen up a series of more tariffs, and closer to the house, the British economy seems as if it might grow a little instead of stagnating?
This is one of the time when you have to see what politicians do, rather than listening to what they say.
As far as US tariffs, the market becomes exhausted by cutting and changing constant levels and time. So they assume that in the end that a kind of agreement will be achieved and that global trade will continue with only a few hiccups.
Maybe it’s wrong, and on Friday, a little enthusiasm is reduced in New York and London.
But the two markets, and Dax index in Frankfurt as well, are still in one point percentage of the highest of all time. So greed is still defeating fear with a big difference.
Here, in England, we must remember that foreigners have at least 58 percent of the London market. That is the latest number of the National Statistics Office and for the end of 2022.
Boost: Footsie still offers good value compared to most other markets, and rose more than 8% this year. The dividend results are 3.5%, which is compared with 1.25%for S&P 500
Because the proportion increased at that time, the possibility of more than 60 percent now. Remember that about three quarters of the FTSE 100 company’s profits come from abroad, so the fact that our economy has been shrinking for two months is not a problem for them.
What Rachel Reeves Chancellor did about taxes in the fall was also not a problem, because they did not pay it.
Indeed, what will he say at the Mansion house this Tuesday about retirement, Jesus and all that are irrelevant to most British shareholders.
It is important for gold because there is a completely reasonable fear that the government cannot control the fiscal deficit.
I don’t like the way where the 10 -year results pushed 4.65 percent on Friday.
You have to ask a brutal question: Why do Britain have to pay more to finance its national debt than other advanced economies in the world? The answer, I am worried, is that international investors do not trust this government.
But that is not a problem for foreign holders from FTSE 100 shares. Footsie offers good value compared to most other markets. It rose more than 8 percent this year.
The dividend results are 3.5 percent, compared to 1.25 percent for the S&P 500, and while dividend growth has been jammed, a wave of shares purchase has helped to support their market values.
So, what’s next? I think the next week will be easily changed for equity. There are many things that may be wrong that are not valued to the market. This is mostly related to the US and the president who is too confident.
They include the possibility that the tariff is a trigger for US recession. We have no new experience about what is the sharp increase in the economy; All the experiences we have are from almost a century ago.
British equity still offers the original value: the results of a decent dividend and some protection against inflation
But like this: it must, to some extent, increase prices, and if inflation increases significantly, people are unable to buy so many items.
There is a problem of trust too. For now, there is still a lot of money that swings, the legacy of the central bank prints so many items.
There is a cryptocurrency boom, with the highest touching bitcoin of all time. But self -confidence can evaporate instantly, as we have seen many times before.
You can still trust the story of ‘The Sunlit Uplands’ – that even though the summer and autumn are awkward, global growth will be solid in 2026 and so on – but feel worried about what will happen in the next few months.
Returning home, the thing that I think is entertaining is that British equity still offers at least the original value: the results of a decent dividend and some protection against inflation. Government finances are not sustainable.
That’s not me who said it; This is the office of the budget responsibility. As a result, the increasingly desperate Chancellor will increase taxes in the fall, and our economy will continue to stagnate.
But look at Britain from outside, and our shares are a pretty good proposition. That is why footsie reached the highest of all time last week.
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