FTSE 100

We were speaking to some students about the financial situation a few months ago. One of the students had been a Financial Services Advisor prior to entering university.


I asked him whether he thought that the FTSE would drop to 3250 ( It was about 5,600 at the time ). He said that would never occur and that soon it would begin to climb again as this was a temporary phenomenon .


I said that he should not be so sure as the FTSE had been at those levels just a few years ago. I told him to follow the market and see what happens.


Well at the moment the FTSE 3780

Will it go down to 3250 ?
Will it go down even further

The companies that make up the index do not seem to be doing well at the moment ( especially the banks) and the outlook for them does not appear to be bright .
In addition to this the weakening pound too would deter investment in the UK.

To compound this there are the so-called emerging markets with their growth and potential for further growth which makes them very attractive propositions .

Would the discerning investor plough his money into the UK or USA where the markets appear to be in free fall or invest in the emerging markets such as India and China where prospects appear to be much brighter
The answer is most likley the latter