Tuesday, 28th November 2017
This chin is going to be tested….
The stock market appears to have an iron chin….
Over the last decade the FTSE has done nothing but rise….
No blow has been sufficiently hefty to wobble it, wind it or retard its progress – let alone threaten to take its legs and put it on the canvas….
Yes, we’ve seen the usual short-term fluctuations in overall values….
But the general direction of travel has been up – relentless rising values with multiple new record highs set along the way….
- No ordinary environment….
In an ordinary environment, you’d expect this kind of rising market to reflect a golden period of corporate success – a boom time for business across the board….
But the environment surrounding this rising market has been anything but ordinary….
A decade of unprecedented loose monetary policy – in the form of record-low interest rates and quantitative easing (money printing) – has flooded the markets with a tidal wave of new cash seeking out returns….
It is this deluge of capital – rather than any bottom-line corporate performance – that has fueled and driven the relentless upward trajectory of the market….
- The Goliath of bull markets….