Monday 14 July 2008

Addicted to speculation

Godzilla meets King Kong - the battle of the bubbles. The FTSE is wilder, but the house price index is ahead at the moment. Both are heading south.

3 comments:

Anonymous said...

An interesting comparison - which suggests the FTSE may have a way down to go yet. 1984 seems a good starting point, as I suppose neither were at highly inflated prices. It would be interesting to see both deflated by the RPI, so the real capital growth could be compared.

Assuming Mr. Capital gains the advantage of accommodation in his house and paying his bills with his share dividends, and pays taxes and maintenance fees in both areas, the comparison would be for me meaningful.

Thanks,

B. in C.

Alice Cook said...

B. in C.

I have more FTSE charts on the way.

Alice

Anonymous said...

I look forward to more on the FTSE, Alice.

Do you think the marked similarity of the P/E ratio line around 1929 and 2000 on this chart should tell us something?

http://www.crestmontresearch.com/pdfs/Stock%20Secular%20Explained.pdf

It would fit with your view...

B. in C.