Excuse the poetic licence, but fresh from a ninth-consecutive day of closing highs for the FTSE 100, there’s a real danger of complacency.
As the index hovers above 7,200, it’s worth taking a step back and appreciating what an incredible 12 months it has been for UK investors – this time last year it was way off 6,000.
Factor in the ups and downs of sterling over that time frame, and the picture becomes much more colourful. And it is this, rather than markets looking toppy, that appears to be the biggest concern for investors.
Indeed, commentators today are more split than ever on the prospects for the domestic market.
For example, this week we have already heard from Skerritts Wealth Management’s Andrew Merricks who believes it is “virtually impossible” to invest with any confidence given the various scenarios between “a hard Brexit, a soft Brexit, a Goldilocks Brexit, and a no Brexit at all”.
Contrast this with the views of Gary Potter, co-head of the F&C Multi-Manager team, who is more optimistic on the prospects for the market given that a weaker currency means the UK is more competitive.
As Potter, and others, also make clear – an investment in the FTSE 100 is not necessarily an investment in the UK economy with most of the companies listed earning most of their profits abroad.
