Friday, 3 June 2011
The FTSE might make it?
Here we are 6 months in and some results are out:
1 - Greece has been bought off for another year. The can is kicked down the road. No one believes this is going to work , in the same way that no one believes Germany is going to close its Nuclear Power Stations. It does however, take the edge off the market for another few months
2 - Growth in the UK and US is falling away and now the focus is going to be on US QE3 - the markets need it to hang on to their 2009/10 gains.
3 - Commodities are bubble tastic, however with all the QE money sloshing around, the challenge of treasuries given US debt and volatile markets - the speculation is not over.
So there we are, I think we will know in a month or two if there is going to be more US QE - it will be defining for the markets, if the punch bowl is taken away, the party will be over.