Is The FTSE Going To Tank Now?

Friday and Monday have seen over 4% wiped off the value of the FTSE 100 (^FTSE). That is a nice reminder of how things were back in Sept-October last year.

With this fall, there is much commentary in the finanical press about the end of the bear market rally and the next big dip.

What I think is less noticed is that the FTSE100 is still 8% down year to date, and that is after a year where it fell 30%. This is not exactly a great time for investors. If the FTSE falls now it is likely to be by a few more percent, not decimation.

As much as the comment now is that the rally is overdone, it is possible that the opposite is true too.
Having said that, I am preparing stop losses and positions generally for a renewed collapse in September/October of this year. We will need to see sustained improvements in many of the economic figures being published to say that we really have hit a bottom.

Counter to this though, I expect inflation to kick-in next year and in an inflationary environment the stock market will be your friend

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