It is 3.22pm – The FTSE 100 is up 121 points at 7105, having briefly broken the all-time level of 7123. This enormous rally on the back of yesterday 82 point rally seems marginally illogical to me and maybe it is time that two men in white coats escorted me from the building.


Whilst I accept that the bears have been seen off the park and that fund managers are loaded with cash and that other asset classes remain unattractive, I see little reason for market to be close to this zenith. Why? Global growth seems to be on the drift. There is little evidence of earnings growth, with yields also flattening out. I do accept that Sterling has fallen 18% since May 2015 and that the FTSE 100 gleans 65% of its earning from dollar income. I also concur that Article 50 will be implemented by the end of March 2107, which provides some qualified clarification. BUT that is still insufficient reason for UK equities to head for the moon. However a wise sage who visited these offices yesterday made it crystal clear that equities were a decent bet until such time interest rates go up. Apart from the FED posting a 25 basis point in December, global rates are likely to remain close to zero for some months. The FTSE 250 has also pushed on adding 1.35%. The DOW is unmoved – down 10 points as I speak.

Not surprisingly dollar related stocks have done really well – HSBC +2%, Oils +2.5%, Mining +1.5%, Glaxo +2%, Astra +0.8%, BATS +1.75%, IMPS +1.5%, Diageo +1.5%, Unilever +1.5%, Reckitt Benckiser +1.8%. Even Deutsche Bank shares are 1.5% to the good.


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