Wednesday, 11 March 2009

FTSE 100 Still Unstable

The simple conclusion after two months of watching the FTSE 100 is that the time wasn't - and isn't yet - right to invest in the stock market.

On 9 January the FTSE 100 was at 4,505.
A month later it had dipped to 4,291.87 (down 4.7%).

We hoped it would go back up, but no ... by Friday 9 March it had sunk to a new low of 3,530.73 - lower than the "low point" we quoted for November 2008. That is down 17.73% on the month, and 21.63% down over the two months.

The conclusion has to be that, at the moment, the market is too unstable to invest.

Yes, it may pick up from here, but the banking malaise continues to drag down the stock market, so there could be more bad news around the corner.

We'll stop pretending to invest, but keep a monthly watching brief for now.

Please note that this is for discussion only, and nothing in this blog constitutes advice.

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