Summary
Implications: 1.FTSE - Largest Monthly gain in 17 years is based upon OTIMISM not a cleasr Financial Foundation. 2.The FTSE Index has risen by 2.2pc - clearly not an indicator of a sustainable Economic Turnaround. Unsubstantiated data May cause future re-allocations inthe forecast. 3.Speculation has, indeed, INFLUENCED consumer confidence. The question , at hand, is SPECULATION. 4.Analysts' provide Estimates - only. The salient point is the foundation of information and the assumption of the underlying variables. 5.The UK consumer is reacting to a "Spark" of hope , which MAY NOT be realistic Finanacial Information but, manipulatation of data!!!
Analysis
Commentary:
1.High Inflation may be a consequence.The "Cure" may not be consecutive and lead t a Downfall!
2.Government Stimulus Are creating an unsustainable Investor and Financial Marketplace "High". Self-fulfilling Optimism.
3.There is likely to be an increase in the supply of credit for trade and
inventories - "Cheap Money"!!!!!
4.Factors tht are being ingored: (a) A hugh increase in the eurozone Unemployment anf Falling Housing Prices - "A warning signal to the Financial Marketplace that Failure should not be ignored"
5.A Superficial Stimulus - at best!!!!
