Look at the FTSE > Flying this year.
And yet the UK economy is flatlining, still, after 4 years. Maybe some signs of growth but from the 2008 nadir you would perhaps expect the FTSE still to be around 5500 or so given the weak growth. Maybe topping 6000 due to high inflation and divis.
But in the recent past it has been trotted out that the FTSE is a very global index. That the index is more closely linked moreover to the commodities market. Well the commodities market is way off its multi-year highs and the commodity companies in the FTSE are having a very tough year.
Instead the index is up mainly led by defensive stocks; this I find very topsy-turvy. Surely the riskier stocks which have been smashed up would rise the most as risk appetite returned. But no, AIM shares remain in the doldrums, if not worse and are to be found at basement prices.
So there is no return to risk, just a buying of defensives by those who have QE money to spend but have no desire to take any risks at all.
So is the QE'd world of 2013 - a very strange place indeed don't you think?