Tuesday, 18 September 2012

FTSE 100 @ 5841.79, -51.73 (-0.88%)

I see I spoke too soon about markets recovering but, as suggested in a previous post (Jam today, not tomorrow (or at least twice a year anyway).), it already looks like there is a partial retreat, from growth and cyclical sectors, and a tentative dip of the toes back into the relative safe havens of those sectors seen as defensive, with utilities, pharmas, consumables, and tobacco holding against the tide.

Funny that, despite not liking uncertainty, it does seem that there are market participants that desire a certain volatility which is frequently provided by media.
Perhaps that is the difference in this case i.e the uncertainty provided by politicians and central bankers, as opposed to the less tangible hype provided by news agencies.
One can (in theory at least), have a tangible effect on the conditions and environment in which markets operate, whereas the other is more rhetorical and provides an emotional roller coaster for an audience and the more vulnerable section of private investors (whose behaviour might then provide a predictable volatility for better backed traders to capitalise on).

Anyway back to the trenches.


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