Ah well, it looks like I was a bit previous with my last post – the FTSE is still going sideways, but, if the threat of a war in Europe and the realization that the Fed is serious about the taper can’t put a significant dent in the index, then what will? On the principle that what doesn’t go down will probably go up, I stand by my previous sentiment! There is a real danger that Putin will invade Ukraine, though he may just be trying to blackmail the new government into keeping away from closer ties with the EU, but, either way, the West cannot really interfere.
While the FTSE has not fully recovered from its Ukraine wobble, the Dow has made yet another all-time high this week and looks set to make further progress. Events in Ukraine are less of a worry for the US and they are more focussed on the economy, which seems to be bouncing back from the severe winter weather. Yesterday’s job numbers were quite reasonable and recent events have knocked sentiment down from the very high levels seen at the beginning of the year, so that should mean that there is scope for further gains.