World Economy

[Kiwi 1,456]

The economic meltdown is understandably being eclipsed by the social meltdown in British cities!

However the sort of mayhem we're seeing in the markets will clearly impact on all our finances and social wellbeing going forward.

The ftse is down another 3.5% this morning, UK growth forecast is set to be downgraded, the riots will cost tens of millions as well as sap consumer and business confidence. I'd say we are facing an imminent downgrade of our AAA rating.

That'll costs us all in terms of increased mortgage/interest rates and further spending cuts. Meanwhile our pensions and Isas are being trashed! At least the sun is shining at the moment .....could be a grim autumn.

[VillagePlank 1,900]

Oil and Copper both down - both tend to be future indicators of the next qtr of economy. Indeed cu is tanking it big time.

[General Cluster 63,123]

Just a quick question: Knowing that (from recent experience) when the market-price of oil rises, domestic energy prices also rise, and when the market-price falls, domestic energy prices still rise...Does anyone know what's going to happen to domestic energy prices, in the near future?

Another market stitch-up?

[VillagePlank 1,900]

Just a quick question: Knowing that (from recent experience) when the market-price of oil rises, domestic energy prices also rise, and when the market-price falls, domestic energy prices still rise...Does anyone know what's going to happen to domestic energy prices, in the near future?

Another market stitch-up?

Try to consider the domestic price as a 24 month moving average of the market price - it should come down. Whether it will, is wet finger in the air and test the wind time!

[VillagePlank 1,900]

Will FTSE end below 5k today - 5012 as I type ...

[Kiwi 1,456]

Will FTSE end below 5k today - 5012 as I type ...

I reckon it'll end below 5k, but again the DAX looks to be one of the biggest losers today. No doubt recognition of what the euro mess is going to cost Germany with them being dragged in to a bigger and more costly bailout courtesy of the ECB.

[VillagePlank 1,900]

I reckon it'll end below 5k, but again the DAX looks to be one of the biggest losers today. No doubt recognition of what the euro mess is going to cost Germany with them being dragged in to a bigger and more costly bailout courtesy of the ECB.

Yes, the hope that this week was priced in is rapidly fading.

[Guest]

Yippee, we've had a bounce back to a footsie of just over 5,000 - lets hope it holds and starts to build again.

I think I might cash in some when we get to 6,000 - my missus wants an extension but want to avoid selling at the bottom.

It's a strange thing I have noticed is that when a crash comes you have virtually no chance of getting out, yet in normal times it is difficult to tell when we are at the top or the bottom of the market - has anybody got a crystal ball?

[PersianPaladin 426]

We bailed out the bank! Not individuals.

Get a grip, you do realise that without the banking system you would be eating sawdust for tea!

The banking system underpins the economy, then again when you get independence I suppose it is upto you in Scotland whether you want one.

Maybe you could go back to bartering?

I say good riddance to the debt-based money system that has caused all sorts of problems. Banks can still lend, but they shouldn't be allowed to create 99% of our nations' money supply via debt:-

http://www.positivemoney.org.uk/

[PersianPaladin 426]

Meanwhile in Europe.....

"It is the worst crisis since World War II and it could have been the worst crisis since World War I if leaders hadn't taken the important decisions," ECB President Jean-Claude Trichet said in an interview with French radio station Europe 1.

http://www.huffingtonpost.com/2011/08/09/ecb-head-jean-claude-tric_n_921884.html

Where are we going as a nation? I don't like this sense of despair...

[Kiwi 1,456]

Where are we going as a nation? I don't like this sense of despair...

Market despair seems to have taken a breather today with the ftse and most other european markets closing up (1.89% for the ftse)

Plenty of despair elsewhere today, pricipally on the streets of London.

[summer blizzard 7,221]

Yippee, we've had a bounce back to a footsie of just over 5,000 - lets hope it holds and starts to build again.

I think I might cash in some when we get to 6,000 - my missus wants an extension but want to avoid selling at the bottom.

It's a strange thing I have noticed is that when a crash comes you have virtually no chance of getting out, yet in normal times it is difficult to tell when we are at the top or the bottom of the market - has anybody got a crystal ball?

If you trade for short term profit then it is indeed hard to guage where you should buy/sell however looking at the long term you can look at historical evidence and pick a mark to sell at. Where most people fail is that either they set an unrealistic mark (wait for your home value to be x10) or stay in the market believing that the rise will continue longer than historical evidence would suggest.

If i was in the FTSE i would pick a mark of 6600 as the 2000 and 2007 peaks were just above 7000 (could make above 30% if you bought now). I would also invest into the NASDAQ as this is possibly the best placed exchange for the long term (i think we all agree tech is the future). If you really wanted to be risky, i would buy 10 year Irish bonds which are around 10% as i do not believe they will require another bailout and unlike Italy and Portugal, they do not require major structural reform, just to pay debts.

As you can see, my personal ethos is to buy into exchanges themselves rather than volatile individual stocks as there is plenty of money to be made. (not that as a 22 year old economics student i do not have the money to invest myself, but this is where i will be putting my money when i have it).

[VillagePlank 1,900]

My view is sell at 95% of ten year high for ten year investment which is 6650. You won't get best price but you'd avoid bubble risk and hopefully a good return as long as you bought at 5% of ten year low.

[john w 116]

Slippery slope back to the red this afternoon after relatively stable morning trades, this time more rumour that banks in EU are more exposed to debt than some American banks would like who likewise are then exposed by being exposed to EU banks.

Follow the leader again...the DAX again taking another hammering and Dow right now down 380 points. I may take a punt at it rising slightly after euros close but not sure im willing to put a spread on it...market is so volatile at present.

[Kiwi 1,456]

Slippery slope back to the red this afternoon after relatively stable morning trades, this time more rumour that banks in EU are more exposed to debt than some American banks would like who likewise are then exposed by being exposed to EU banks.

Follow the leader again...the DAX again taking another hammering and Dow right now down 380 points. I may take a punt at it rising slightly after euros close but not sure im willing to put a spread on it...market is so volatile at present.

Yes, been watching this afternoon when it all started heading south quite quickly.

Italian, Spanish, French and German markets all down more than 4%+. Gold futures up and the euro down

[k19 29]

I don't want to sound like such an unbelievable amateur, but I am. Can somebody explain to me how a company ends up in the FTSE100 is it if they have a certain total market value? If so which company has the cheapest individual shares?

[kar999 3,112]

I don't want to sound like such an unbelievable amateur, but I am. Can somebody explain to me how a company ends up in the FTSE100 is it if they have a certain total market value? If so which company has the cheapest individual shares?

The FTSE 100 is dependant on the market capitalisation of the company.

Market capitalization (often market cap) is a measurement of the size of a business enterprise (corporation) equal to the share price times the number of shares outstanding (shares that have been authorized, issued, and purchased by investors) of a publicly traded company

The share price is irrelavant as you ccould have 10 million shares @ £1 or 1 million at £10 and still be the same.

A list of the current FTSE 100 and their share price can be found here:

http://www.hl.co.uk/shares/stock-market-summary/ftse-100

[picog 377]

FTSE closed just above 5000 at 5007, so a bad end to the day.

Apparently there are rumours that France might not be in tip top shape, and that's why the FTSE fell back.

Gold still storming at $1782!

[PersianPaladin 426]

Wow.....Dylan Ratigan on MSNBC is having his "Network" moment....great words here:-

http://www.dylanratigan.com/2011/08/09/dylan-ratigan-mad-as-hell-his-epic-network-moment/

[Kiwi 1,456]

Gold still storming at $1782!

$1800 tomorrow??

this is getting silly!!! do you think that Gordon wakes up in a cold sweat these days??

edit:11.50pm Wednesday....just hit $1810 !!!

am I over reacting or are things going pear-shaped??

Edited August 10, 2011 by Kiwi

[picog 377]

One of the investment people specialising in precious metals is predicting that gold will reach $2,400 by year end! That's a 33% rise on where it is now.

Has anyone else heard anything like this?

Edited August 14, 2011 by picog

[Guest]

No, and I don't know where it will peak, what I do know is that it will peak as confidence in the various stock market and currencies pick up and become a safe haven again for cash, which is the reason why it is being bought at the moment. Once it peaks it will fall in value, making it a somewhat risky investment near the top of the market.

Edited August 14, 2011 by mike Meehan

[summer blizzard 7,221]

One of the investment people specialising in precious metals is predicting that gold will reach $2,400 by year end! That's a 33% rise on where it is now.

Has anyone else heard anything like this?

Gold increased in price by about 100% in 2010 and likely more this year with the economic woes.

Best investment in 2010 was suprisingly coffee which increased by 300%.

[Snowyowl9 1,871]

Gold a record high thats the best thing to have now.

Interesting where The UK rate on money for wars top 3 from 2010.

Thats where the money`s all going mainly.

http://en.wikipedia.org/wiki/list_of_countries_by_military_expenditures#SIPRI_Yearbook_2010

[Guest]

Gold a record high thats the best thing to have now.

Interesting where The UK rate on money for wars top 3 from 2010.

Thats where the money`s all going mainly.

http://en.wikipedia....I_Yearbook_2010

Gordon Brown please note