Saturday, 31 December 2011

2011 FTSE close.

FTSE 100 @ 5572.28, +5.51 (+0.10%)

Well thats 2011 just about done with apart from celebrating the coming of a New Year. 

Markets staged a little flurry of positive momentum at the end but not enough to return the FTSE or major European indices to positive annual territory. 
Not really unexpected I guess and about all that Europe could expect after many months of "can we fix it, yes we can" but ultimately producing very little of substance. 
Perhaps the EU can limp along with the Euro long enough for the world's major economies to fix themselves and bring some relief to the EU with it. 
At present the rock (of debt), and the hard place (zero growth), is proving a puzzle within the puzzle of EU bureaucracy and political positioning.
Italy's recent short and medium term bond issues gave the country a little relief from a critically rising cost of borrowing but only time will tell if this is a stabilizing point or just a temporary relief.

Amazingly US markets have finished up for the year despite the confusion of mixed data coming from various sources and the debate around US debt levels.

As things stand my portfolio has also held up surprisingly well with a gain of 11.67% for 2011 which I will look at in a little more detail during the December update.

FTSE100 @ 5572.28, -6.68% (against 31 Dec 2010 - 5971.01)
Merchant Adventurer's Index @ 1411.8, +11.67% (against 31 Dec 2010 - 1264.2)

Not quite what my hopes and dreams are made off but I have to say it is a very satisfactory performance against a backdrop of significant turmoil. 

Unfortunately, with so much uncertainty and confusion still around us, it looks like 2012 will likely be another year of wildly swinging confidence and emotions and I can't see too much momentum building up until the 3rd, or possibly 4th quarter. 
Even that would be dependent on no material economic shocks between now and then which could then provide a floor of stability as current company and sovereign strategies mature.

But, as we are standing at the start of a New Year we should look forward and find some positives. After all, it is entirely possible that if the worst hasn't happened yet then it might not, so let me wish you all a

Happy New Year (and lets hope its a prosperous one).

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