Trends in the FTSE 100

27 years of data for the FTSE100 Share Index. Also shown is a line which follows the trend of the index from 1984 to 1994. Data from the Financial Times

27 years of data for the FTSE100 Share Index. Also shown is a line which follows the trend of the index from 1984 to 1994. Data from the Financial Times. Click for larger version

Since reading the Financial Times the other week I have come over all financially-minded and so I present the above graph to you for your consideration. I was very surprised when I came across it on the FT website – it shows a perspective on recent stock market turmoil which I have never seen on the BBC News. It shows approximately 27 years of data for the FTSE100 Share Index – a general measure of stock market prices for UK companies. Also shown is a line which follows the trend of the index from 1984 to 1994 showing roughly 7% growth year-after-year for a decade. I have just three things to say.

  1. Whatever process the data represents made sense up until the mid-1990’s. Since then it doesn’t look there is any kind of consistent trend for more than a few years.
  2. Based on this data, it would be rash IMHO to place a bet – perhaps using all the money in one’s pension fund – on the value of the index in (say) 20 years.
  3. Shares can go up as well as down. Or up and down as well as down and up. I am not a registered Financial Advisor
Advertisements

Tags: ,

4 Responses to “Trends in the FTSE 100”

  1. Peter Says:

    Maybe the signs of Algorithmic trading? I don’t put much hope in people putting in safety measures to prevent problems…. the financial industry seem to be capable of unleashing financial meltdowns on decadal intervals for several centuries… this will not be the last crash!

    PEter

  2. Martin Juckes Says:

    As the FTSE 100 hovers around the 6000 mark again, it would be interesting to see an update to this graph.

    • protonsforbreakfast Says:

      Good point. I am holiday at the moment but I will try and find that data when I get back home.

      Michael

  3. Trends in the FTSE-100 updated | Protons for Breakfast Blog Says:

    […] holiday in Northumberland last week, I received a blog comment on an article I wrote in 2011 on Trends in the FTSE 100 share […]

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s


%d bloggers like this: