Ftse

[Scarlet Pimpernell]

Anyone clued up as to why the FTSE is j3rking about all over the shop?

[Pip]

Oil situation?

[Habeeb]

I could give you a very lengthy and in depth report about it, but to summarise its because of the dollar weakening and a drop in the U.S markets which is having a massive knock on effect all around the world. Oil prices and war are not helping either. Things should bounce back to normal after a while. Also fears about rising interest rates to cut down inflation, and rising commodity prices have triggered this. The main problem is the typical "animal spirits" behaviour and loss of confidence in the markets.

check this link out for a more detailed summary:

http://news.bbc.co.uk/1/hi/business/5011530.stm

[alexis_ls400]

I could give you a very lengthy and in depth report about it, but to summarise its because of the dollar weakening and a drop in the U.S markets which is having a massive knock on effect all around the world. Oil prices and war are not helping either. Things should bounce back to normal after a while. Also fears about rising interest rates to cut down inflation, and rising commodity prices have triggered this. The main problem is the typical "animal spirits" behaviour and loss of confidence in the markets.

check this link out for a more detailed summary:

http://news.bbc.co.uk/1/hi/business/5011530.stm

That could very well mean good buying opportunities if this is the correction we've been waiting for or if the market continues to fall - good shorting positions. Habeeb - nice summary.

[Pip]

Aye and the pound is very strong at the moment to the dollar which is great for ppl like me with interests in the states.

[Mr Morse]

Aye and the pound is very strong at the moment to the dollar which is great for ppl like me with interests in the states.

But so so good for me who is paid in USD!

Let's face it, there are a number of reasons why the Dollar is low........but the real reason is that the Fed wants the rest of the world to pay for the war in Iraq and the only way they can do that is with a low Dollar to the rest of the world buys cheap US goods.

[alexis_ls400]

If anyone has read today's Times, there is an interesting article on market sentiment by a well known fund manager. http://www.timesonline.co.uk/newspaper/0,,...2196025,00.html

My feeling - summer volatility should not surprise anyone. The downturn could drag on a bit. Good stock picking skills is what is needed to see one through the summer.

[maneesh]

Historical trends demonstrate that the markets tend to drop in spring/summer, rising between November and March. That's my own experience too.

[alexis_ls400]

as the saying goes 'sell in May then go away'.

I still like to find good bargains - and there are a few about. I do not see this as an abnormal market, in which we run into prolonged Bear territory. What is more likely is a 1994 equivalent when, share prices in some stocks drifted, some went down and selectively others rise. As i've said good stock picking is needed.