FTSE 100: From Zero To Hero?

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The UK market is highly backward. Its progress since the dotcom bubble has been breathtaking in a bad way.

Take a look:

There has been a fair inflow of taxable dividends over the period, but it’s no consolation when this kind of performance is happening elsewhere:

So now the UK and the rest of the world is hoping it is pulling itself out of the pandemic and as fears of the Omicron edition seem to subside, what’s in the UK for the bargain basement?

Acquisitions are clearly on the way, and the government appears to be on the edge of panic as it sees its economic base strip mined. Not that it hasn’t lasted for years, but now that companies in so many countries have free money and the UK market is so cheap, it can be disappointing to see what happens next. I believe the government will not welcome large acquisitions, but it is just a matter of time before it starts.

Meanwhile, Brexit is not going as promised. The world isn’t walking to Britain’s door to make trade deals, the EU isn’t playing well, Britons aren’t exactly happy they can’t jump to the EU when they want to, although they’re more and while the drawbacks seem obvious, the benefits are nowhere to be seen.

Independent UK gambling has not failed though; It just isn’t going. It may still spring to life, but seen in context, British success has been reversed for 100 years or more, so you have to imagine a renaissance being nothing but a fever dream. does not need to be done. But for the investor, “so what?”

You will first see a renaissance in the stock market which is so low that any green shoots will be there long ago.

Britain can’t do well if the market is hanging half price sell notices on its economy.

So this is the setting of the UK FTSE:

Without any disaster, the FTSE should move to the top of the channel and then up and down. Yet without some sort of economic pivot, the FTSE’s problems are structural. Major economies have stock markets but many “B list” countries do not, or those that have them are not physical.

So the real outcome of Brexit will be foreshadowed on the London Stock Exchange. If the post-Brexit city withers away, as it would without a major change in UK policy, the market will wither along with it. If Brexiters start realizing the Brexit dream, it will be out of place.

This is a profitable deal for the investor. For a failed outcome, the takeover will be a feast, the sky is the limit of a completely blocked FTSE in an economic renaissance. So FTSE acquisition targets are an exciting prospect and there are many.


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