Is the Recent FTSE 100 Bull Run Now Over?
It’s been feared that the excess credit from monetary easing by the central banks has caused an equity bubble that will burst as soon as the easing ceases. It was certainly one of the reasons for the earlier bull run in stocks and recovery of the FTSE 100, but recent stock value drops in June have indicated the bubble indeed could be bursting and the bull run is up. So what is the outlook for the FTSE and the equity market? This infographic from Saxo Markets aims to find out.
After dips in April, the FTSE 100 climbed to highs not seen since 1999 and reached a stock market value of 6840 in May this year. However, a recent five month low in June has indicated that the market rally could be over and the index could fall sharply once again. Follow the FTSE’s ‘bull run’ this year with Saxo’s infographic and decide whether the recent dip means the run will be over soon.
You can also follow the movements in the FTSE index from 1996 and compare the historical patterns, including the previous two episodes of ‘boom and bust’. Could the FTSE’s history indicate what will happen next?
This trend in equity markets has been mirrored in other countries too. Check out the infographic to see how other markets are fluctuating due to yields on government debts continuing to fall. The outlook for the equity market is also still uncertain at the moment. Looking at both the price-earnings ratio and the return on equity gives different predictions for the future of the FTSE 100 value.
Finally, you can read Saxo’s infographic to find out what could be the cause of the equity market bubble burst – Saxo Capital Markets’ Nick Beecroft thinks that the Federal Reserve’s quantitative easing programme could be the beginning and end of this equity bubble and the FTSE’s bull run. What do you think? Have your say by joining Saxo on Twitter.
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