Investors are bracing themselves for one of the most difficult years in stock market history after new figures showed more than $5 trillion (£2.7 trillion) was wiped off the value of shares across the globe in January alone. The loss represents one of the worst starts to a year since records began - a stark indication that markets anticipate a global recession that could last for several years. In London, the FTSE 100 lost £77bn in one day alone - 21 January - in frenetic dealing dubbed a second Black Monday after the great crash of 1987. Although shares have since stabilised somewhat, there is still turmoil in the banking and finance sector.
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Cost of world shares turmoil is £2.7 trillion
Thursday, February 14th, 2008Northern Rock kicked out of FTSE 100
Friday, December 14th, 2007In the UK, Northern Rock’s shares (Britain’s fifth largest mortgage bank) have been the worst hit by the credit crunch dropping from £12 early in the year to less the £1. It will be relgated later this month to the bottom of FTSE 250 index for medium sized companies. Just narrowly missing the index that tracks small sized companies.
Make money from falling house prices
Saturday, December 8th, 2007The UK Residential Index fund will be launched in January 2008. What is this and how does it work? Its a complex investment fund that uses derivatives to bet on the extent to which the property market will fall over various time periods. One of the predictions at the moment is that house prices could fall by 10% next year and would carry on into the next year. So two years of house price falls or as they say, “correct” may be on the cards because it is believed that British property is overvalued by an astonishing 40%.
