FTSE 100 down amid concerns for the future
The FTSE 100 index was down 2.61% today amid concerns about the economic future of the UK and the strength of the dollar. While so-called defensive stocks such as utilities fared better than most, we did see a sell off across the board with all blue chips hit. After a relatively stable period it appears as though investors are now looking to take profits where possible and reposition themselves for the future.
Rumour has it that the UK stock market is said to look forward about eight months which is possibly why we have seen a recent rally even though the UK economy was still heading downwards. Whether the markets see turmoil ahead in the later part of 2009 and early part of 2010 remains to be seen but many investors are still concerned about the significant national debt taken on by the UK government. An increase in taxes will not only slow any potential recovery but also hit consumers and disposable incomes which are vital if the economy is to perform better in the short to medium term.
A number of fundraisings have also hit some share prices with a growing number of companies taking advantage of the recent rally to raise funds to strengthen their balance sheets.
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