. . . and of recession. The BBC Business News at 6.15a.m today informed us that the UK economy is technically "out of recession" because output or GDP or some equally badly defined "measure" had gone up by an eye-watering 0.2% repeat nought point two percent that's two parts in a THOUSAND in the three months July to September. Well, Hoo-Bluddi-Ray! Does anybody really think the measure can be measured that accurately? Well, apparently it can't because by 1.00p.m the BBC News was telling us that whatever was being measured had gone down in the last quarter. And what did the FTSE Index make of this sudden surge or decline take your pick in British fortunes? Well, as I blog, it's soaring about 80 points from last night's close to stand at about 5280. "Why is this?" I hear you cry. Well I'll tell you. The first reason is that Wall Street was up 1.3% yesterday, so the Red Braces of Britain MUST buy shares in case they would otherwise get left behind. The second reason is that rhe FTSE Index of 100 leading shares has absolutely no connection whatsoever to the economy. Its surge since its low in March has been driven almost entirely by gains in the mining and oil sectors. Which gives the lie to the nonsense you read in the "Money" sections of the Fat Sundays that "shares are the best investment over the long term"(*) - quoting what has happened to the FTSE Index since it started up in January 1984 in defence of this ridiculous shibboleth.. Shares might be just the thing for a tracker-fund manager with £billions to invest on your behalf in a fund that will last for a thouand years - though I wouldn't bet on it. But shares aren't a good bet for me, you or the average blogger because we aren't going to live long enough, and we haven't got nearly enough NOT NEARLY ENOUGH disposable wealth to invest in a big enough numbers of shares in a big enough spread of the FTSE to track it's ups and downs. So forget about buying yer 200 Marks and Spencer shares so that you can retire to Spain next week on the proceeds.
(*) Bonds is best! I don't mean corporates (remember Lehmans?) or local councils (like Orange County, Calif. or the wise councillors who invested in Landsbanski) Stick to UK Gilts. Or if you insist on diversifying, try some more UK Gilts. The Gilts Market is a proper market. The Stock Market is not. You can calculate the cash flow on your Gilts TO THE PENNY over the whole term to maturity. You can't rely on BA or BAA or Rolls Royce to still be in business this time next week. Remember GEC-Marconi . . remember RBS . . . remember Enron?
(*) Bonds is best! I don't mean corporates (remember Lehmans?) or local councils (like Orange County, Calif. or the wise councillors who invested in Landsbanski) Stick to UK Gilts. Or if you insist on diversifying, try some more UK Gilts. The Gilts Market is a proper market. The Stock Market is not. You can calculate the cash flow on your Gilts TO THE PENNY over the whole term to maturity. You can't rely on BA or BAA or Rolls Royce to still be in business this time next week. Remember GEC-Marconi . . remember RBS . . . remember Enron?
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I don't leave comments on blogs that use Word Verification. Ditto blogs which I know have Comment Moderation applied. Life's too short and I'm too busy makin' money and what the Hell are these people scared of anyway? If you don't like some creep's comment . . TRY DELETING IT! You have that privilege.
And I never read unpunctuated so-called poetry. I don't understand why self-styled poets think it's clever to make their work difficult to read/understand.