Today's FTSE 100 fall

The FTSE 100 plummeted 1.53% today. According to my records, that is the lowest it has been since Friday. Should we be concerned?

If you’re concerned you best stick to a savings account.

7 Likes

Globally, nobody cares about the FTSE100. It’s one of the worst indices to invest in historically. But what you described happens in any market dozens of times every year. That’s literally just market movement.

6 Likes

Is this post satire? 1.53% drop is not a crash. Friday was only two trading days ago.

Can a mod edit this topic to change it to something less alarmist and more accurate?

17 Likes

Nope

1 Like

Due to the impending doom forecasted by this severe contraction, I have liquidated all of my investments.

5 Likes

So it reversed some of the gains made during the week.

I am not sure if this thread is a joke?

9 Likes

If the market had just moved around a bit today then I would tend to agree with most of the comments here.

However, the UK Gilts also dropped quite badly today and are now negative yielding out to the 6 year duration. Clearly people are moving money to the security of Government bonds even if they are yielding negative returns, which is not a good sign. Not sure whether this is being caused by some negative looking signs around the UK economy, or if people are expecting another drop in UK interest rates, but something has caused a reasonably strong risk off move today and I for one will now be keeping an eye out for what’s caused this move.

It’s also worth noting that Gold has now broken through the $1,800 level and looks like it might now hold and possibly continue to build upon the recent price increases, which is another sign that people are moving towards save haven assets, even if they offer no yield. (better than negatively yielding bonds)

I agree that no one indicator should be taken too seriously. However, when multiple indicators start potentially saying the same thing, in my experience then that’s the time to start paying attention.

Matt

2 Likes

I was actually considering considering cashing in everything that is not gold or gold miners :joy:

Instead I have trimmed it down so that around 50% of my budget is gold ETCs or cash, and about a quarter of that remaining 50% (porftolio) is gold miners (or explorers… Greatland Gold - GGP is still there :smiley:).

I still haven’t fully disregarded the option of selling everything except gold and a handful of companies that I really believe in long term.

P.S. I guess your post is a joke though, mine is not :smiley:

Thank you for adding some extra information. You’re right to say it’s worth looking at more indicators, which is why I was so surprised this topic was prompted by only one.

Could it be the recent massive job losses and the impending cessation of the furlough scheme are having an impact here?

For me personally, this isn’t making much difference; for months now I’ve been thinking that there’s no real bounce in the FTSE 100/250, and that the furlough scheme has only been a brake not a solution, meaning that problems have only been delayed to later down the line (later then, which would appear to be now).

My opinion, it may be the next month or two is crucial. We’ve only got July and August before we enter September and the anticipated Winter second wave of COVID-19. That would be when any actual crash may come, I think.

Since January around 20% of the trading days have finished with a drop of 1.5% or more. It’s a far smaller % of the total days if you go back further and use a larger sample, but this year has had some fairly epic volatility.

I would advise you to have a read of sites that cover general market updates, and sentiment. For example HL do a coverage of all the worlds markets 3 times a day at https://www.hl.co.uk/shares/stock-market-news . This will give you an understanding of why the market might have these kind of shifts. You can also see from this page, where the markets have been recently, and from that you see that 1.5% is not bad at all.

:joy: I’m 99% sure OP is joking. That’s nearly 65x as sure as the size of the cliff the FTSE 100 fell off when they posted, that’s how sure I am.

2 Likes