Where it stops, nobody knows!

It's been an interesting few weeks in various investment markets. With much optimism in the lead up to the American election and with President Obama safely re-installed into the White House, the hangover from the party seems to have set in. With various hopes and fears once again emerging from Europe, there seem to be many 'jitters' in a few of the major financial indexes. Overall, the markets have remained relatively constant over the last 6 months, and using the example of the FTSE 100 (not always the best measure) as a reasonable UK local market equity index, we can see the results.

We can see that from 01 May 2012, the index stood at 5,812.20 and by 10 November 2012 this had moved to 5,769.70. For additional past reference, the FTSE 100 stood at:

Date	FTSE 100 Index Value
10 November 2011	5,444.80
10 November 2010	5,816.90
10 November 2009	5,230.50
10 November 2008	4,403.90

Approximate Figures (Source uk.finance.yahoo.com)

You will note from these results that past performance is no guarantee of future performance and that fund values can fall as well as rise.

I am sure that within the next 4-6 weeks we will see the usual seasonal speculation as to where the FTSE 100 index will be at the end of 2013. I have to admit that I think that 'UK Plc' looks in far better condition, with its various austere fiscal policies, to face the significant and continuing challenges that I believe the global economy has to share with its many contributors over 2013 and beyond. Bearing in mind that the highest peak of the FTSE100 (on 30 December 1999/ 6,930.20 points) was now some 13 years ago (although it got close again to this level in late 2007), it does raise the question as to when the current Index 'value' mould that we have become very accustomed too will be broken, if at all.

Only time will tell, however, it is interesting to note (although not a direct comparison) that the American Dow Jones Index's highest point in past years was 14,164.53 points (09 October 2007) and this was nearly reached again in 2012 (13,610.15 points at 13 October 2012). With the fears of a post-election 'Fiscal Cliff' looming (seems to be the latest buzz phrase) I am pleased to see that this past index high milestone has been approached again in such an economic climate.

Is it time for the UK and its various Indices to do the same. As the title suggests, 'Where it stops.........'

Past performance is not a guarantee of future performance. Fund values can fall as well as rise and are not guaranteed. No individual advice or fund recommendation has been provided in the content of this Blog.

Chapters Financial Limited can help you with your savings and investment allocation and planning.

Keith G Churchouse, Director
Chartered Financial Planner
ISO 22222 Certified Financial Planner
Chapters Financial Limited is authorised and regulated by the Financial Services Authority, number 402899.