Simon English: Crisis, what crisis? Footsie stays unfazed
Thursday 15 December 2011
Outlook What's up with the stock market? Hasn't it been told there's a crisis on? It fell more than 100 points yesterday, but in general the FTSE 100 is acting as if there's no possible trouble ahead. It's more turbulent than usual (100-point moves used to be news in themselves) but at 5,367 it is signalling that everything is basically fine.
What's going on? One theory is that equities, theoretically the most risky asset class, are presently seen as the closest to a safe haven that exists. In other times of strife, investors abandon shares and pile into government bonds on the basis that, well, entire countries don't go bust very often.
Just now, big companies are seen as safer than countries. That's quite scary. Take heart, if you can, from the reams of evidence that investors aren't always right. Often not, in fact.
- 1 Keira Knightley topless: Usually conservative actress does own take on #Freethenipple campaign for Interview Magazine
- 2 Oil tanker with $100 million cargo goes missing off Texas coast
- 3 George Galloway left with severe bruising after attack in Notting Hill by man 'shouting about the Holocaust'
- 4 Lady al-Qa’ida: On the trail of Dr Aafia Siddiqui, the world’s most wanted prisoner
- 5 A teacher speaks out: 'I'm effectively being forced out of a career that I wanted to love'
Robin Williams Emmys tribute led by Billy Crystal criticised for including 'racist' joke about Muslim woman
The Rotherham child abuse scandal is a tale of apologists, misogyny and double standards
What do immigrants really think of Britain? Polish immigrant's Reddit post goes viral
Scottish independence TV debate: Pumped-up Alex Salmond bounces back in bruising second round against Alistair Darling
Do you realise just how foolish the UK looks?
With Douglas Carswell joining Ukip, my party has taken another giant step forward
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