At least Sterling is finally taking it on the chin after the huge short squeeze over the last couple days.
I have to question the mental stability of trading desks in London. How should shrinking GDP contribute to higher company profits ? Retail sales couple of days ago dissapointing ! Ridiculous.
The pre-packaged answer normally given is that GDP is backward looking... A couple of reason this weak GDP could appear positive for stocks: 1) GBP TWI is down by more than 1%; 2) likelihood of a more 'helpful', less hawkish BoE. Moreover, I would think that most of the move in the FTSE is just a delayed reaction to the Spooz O/N.
Yeah, this is exactly what media do. They cover-up their actions with nice and logical explanation. Damn manipulators... Good earning, run-up ; no-brainer... Good earning, run-down; it was already priced in...
Indeed, I went short prior to the news release, when news came out I thought to myself I was about to profit nicely...and instead we got THAT! Nonsense.
If i may ask why do u think sterling wont go to $1.2 and secondly u think UK real estate is off the hook. thirdly i believe u one of those very experience traders on this site.............so why would u look for real estate when interest rate is 0 ? wouldnt mind learning pls
Low IR drives property market upwards (cheap mortgages) P.S. On the other hand I am not convinced property market is a good investment in the UK, yet.