FTSE Zombie Rises

0:00Let's talk about the FTSE, because that's the big hairy deal in the UK market and what a shower it's been for best part of generation. Actually, not the best part of generation for more than a generation. If you look back at the.com, that was the high, meaningful high. And since then, 25 years and however many hundreds of percent even of inflation later, we're still roughly in the same place. Now here's a chart of the American market. I know, I know.

0:29And the UK market, just to give you some perspective. Yes, Isn't that interesting? Oh what a dead duck the FTSE 100 is. Now you must say, well, it's the American market, you know. Well, that's not fair. Well here you go. Here's the German market with the American market. There you are now. So am I going to say what a lot of rubbish the UK market is and how should avoid it like the plague? No, I'm going to say the opposite. Is that because I'm a contrarian?

0:59Probably. Now the market itself has disappointed for a very long time, but I've done very well from it because basically the market has slowly but surely been liquidated. All the good companies have been bought out cheap as chips. And right now that is going on left, right and centre. But have a look at this chart. Well, we've seen those charts, but let's get some context in it. The FTSE is making new highs and is on a run and is going places. That's what the chart says to me anyway. You've got a very, very mispriced, I will call it cheap. No one likes that word in the market. No such thing as cheap bottom pickers are cotton pickers. No such thing as are cheap.

1:44Share all that, all that utter, utter rubbish. The UK is cheap because systemically it's now managed at pretty much every level. It's a complete shambles, which is actually the UK. The UK, if you want to sum it all up, all its ills is because it's a shambles and the UK market is a shambles and markets that are shambles have low values. Because why would you invest in a company that's on a market that is unstable or doesn't support a decent value or is badly run, badly moderated, badly regulated, lowly regarded. Now there's a very good reason why the UK market's so low. And this goes back just such a long way. So at the end of the.com boom or in and around that point, the regulators, in fact the government came out and said no pension funds, you've got to match your liabilities with your investments and therefore you've got to be really, really safe. None of these blooming shares was ridiculously dodgy. You've got to invest in safe things like bonds. Like our bonds.

2:59Yes, you've got to invest in our bonds. Guess what happened to bonds? They went that way now because you weren't allowed to invest in shares and you had to invest in bonds. Well, who's going to buy British shares if it's not British pension funds? So the government or the system of government pushed our pension funds out of shares into their bonds so they could borrow money and squander it. And the stock market languished. Now the government know this now, have known this for some time, and they even came out a few years ago and said, oh, pension funds, you now must invest in shares.

3:36Oh, but by the way, no, no, no, don't stop investing in our bonds. Well, how's that going to work? It isn't, is it? But anyway, at some point, shares get so cheap that the predators smell blood or a very, very cheap mill become a calling. Now they've been calling for a very long time, but now they really are banging on the door and the number of shares that are in the market has shrunk and shrunk and shrunk. Now that will push prices up because if your market hasn't gone anywhere for 25 years, I'm not sure what the inflation level has been over the last 25 years.

4:07I'll go and have a look. By the way, if you want to find out what real inflation has been, just get the official figures and add 50%. So if it's been 20%, it's 30%, it's been 100%, it's 150%. And I know this because I've been doing my own research and time and time again it comes out 1 1/2 times. Anyway, let's go back. Ask the Bank of England how much a pound in 2000 is now worth. Let me guess, 60P? Probably less, but we'll find out, so here we go. So anyway, the Bank of England has an inflation calculator. It doesn't say what your pound is now worth £1.00 in 2000 is worth it says 10 LB in 2000.

4:52How much you'd have to spend today to get the same value? Which of course is confusing and feels better, I suppose than saying what really happened in the way What happened to your 1 LB? Well, today you'd have to spend £1.95, actually £1.96. Call it 2 lbs. You have spent £2 today to get what would have cost you 1 LB in 2000. So let's add 50%. So actually you need £2.50 to buy what you could have bought in 2000 for 1 LB. Pretty sobering that even 2 lbs Pretty sobering. I remember 2000, you know, and I've done the maths myself because I went back to when I started out in business in 1982 and my car cost 3200 and it was the cheapest car you could buy. And now that's about 15,000.

5:45And when I made my first killing in the market, I bought a gold President Rolex for a certain amount of money, $17,000 and again that's now $45,000. So actually if you go back into the 90's, the late 90s, that 1 LB is now basically 3, not 2 1/2. But my numbers come out around those levels when I do them. When I go back and I can remember what I paid for stuff, it is, you know, two to three times late 90s to 2005 times from the early 80s. Now the reason for that, the reason why I'm right and they're right too, or they can get away with being wrong, is that this, this thing called hedonics, OK, which means that I had a Mini Metro, which was a, let's just say what it was a rubbish car in comparison with today's car. It was rubbish.

6:44And therefore the same base car that costs 15,000 now is actually more of a car. It's 30% more of a car than my car was because it's better. And then they massage all the figures to take into account how much better things are now, how much better your computer is, how much better your television is, so much bigger, so much more lovely. Same price. Well, probably not, you know what I'm saying. And that improvement in quality they marked down inflation with. So anyway, back to where we were. So you can say since 2000 called to the Bank of England, the price of the market should be at least double and well it isn't is it?

7:29It was 7000 and according to their massage figures it should be 14,000. So hold that thought. So when you look at the American chart and you see that it should be the FTSE if it was just did as well as America should be like 35,000 or 40,000. It's actually not even the inflation number, which is 14,000 and right now at just shy of 11. Well, that extra 3, that's the best part of 25% return right there, just to get it back to where it roughly was according to the Bank of England's figures in 2000. Now you can turn that around and go, well, according to Clem, it should be 14,000 + 50%, should be 21,000 in comparison, if it kept up with where it was at thetopofthe.com boom a generation later.

8:16And so forget the 40,000 on the S&P or whatever the NASDAQ is 50 thousand 60,000 or what the DAX is. Forget all that stuff. Just by inflation it should be somewhere between 14,000 and 20,000 just to be round Number ish about it. And here we are not even 11. But take a look at this chart. You can see it went nowhere for a long, long time, but it's now going somewhere. So we're back to the old rule of which way is the market going. It's going up and it's going up now.

8:50So if we're in a new world, if we're in a new trend, it's got a long way to go. And that is how I'm playing the UK market. It has sat still for the best part of a generation. It's now on the move. Now I haven't got a Nikkei char, but if you look at the Nikkei you can see the same thing. 89 it went, you know, from 40,000 to Nuppance and it just went sideways. It went nowhere. It went nowhere and nowhere. And about five years ago it suddenly broke out.

9:17It suddenly started to go somewhere. And since then I think it's up three or four times. By the way, I'm consistent. This is a chart I did two years ago saying the FTSE was going to go up a lot. It was like 8000 then. So anyway, same reasoning, same thought process. It would break up. Well, now it has done it and it's on its way. So here's that chart. Anyway, back to what I was saying. So what you have in a market which crashes and you could say systemically crashes, it takes a generation for the market to get interesting again.

10:05And actually an old broker told me that during the dock on crash, much to my sadness, he said it'll take a whole generation before this market comes back. And I went, Oh no, that's 25 years, I'm only 35. What are you talking about? Was like, yeah, what's 35? I'm not going to wait till I'm 60. No, but anyway, he turned out right. So here we are. And the market is going somewhere. You can see it going somewhere. You can see it just looking down at the chart and there it is.

10:33You can see it going nowhere. And now you can see it going somewhere and that somewhere is up. So that is the key thing. You only have to know which way the market is going to prosper and it's going up. So UK guys, thumbs up and girls thumbs up. This market is in a ball and it's going to be in a ball for a very long time and it in a sense doesn't really matter medium to long term what the other markets do and and they're going to go up anyway. The UK FTSE is on its way and I've staked it out. You can go on to a new FN my site and get real time and you can get level 2 real time, which will cost you 1000 LB elsewhere to get.

11:15Yeah, you can get it for free and you can do all sorts of clever stuff on there, get all the top list, lots and lots of stuff. And I'm building that tool for my own investing. And that's why I do so well, because I build financial tools that other people don't have. And so come on by and have a look. But the key thing is the FTSE is on its way. So it doesn't matter whether we got a Labour government in, it doesn't matter whether we had a Conservative government, doesn't matter whether Nigel Farage gets in or not.

11:44This market is on its way and it's going to go far over a long period of time. So all you needed to be is pick good stocks, be sensible and you'll have a good return. That's my thinking. Now do your own research, do your own thinking. This is not financial advice, this is my opinion. But look at those charts. They say nowhere for 25 years now it's going places. Now, if you want to have an analogue for that, go look at gold. He spent years doing that, and suddenly it goes whoop. And it broke out.

12:18And I wrote about that breakout when it happened, and I said, well, God's going places because it made that move. That move doesn't look like anything in the recent past or in this case, the long past. Yeah. And suddenly it's taking on a life of its own because it's taking on a life of its own, and it's going up. Remember that. All you ever have to know is which way is that share going up or down? And if it's going down, you don't want to be long.

12:46If it's going up, you want to be long. Yeah, simple as that. And if you look at it and you go, I can't tell which way that's going, why would you enter that trade? But when you know, well, there's another rule. It's another Clem rule. If you think you know, you don't. If you know, you know you do. And you got to know, you know, and you might say, what are you talking about? How do I know? I know. There's certain things in life, when you see them, you know, and you know, that feeling, that gut feeling, you go, oh, yes, there it is. And when you go, oh, is that it?

13:17Is it there? I think it's there. You know it isn't. Yeah. So this market, I look at it and I go, oh, yeah, here we go, Here we go. And that is my message in this video. This market is on its way not just up to Christmas, but for a very long time indeed. And if the roof comes in, it won't be affected too much, won't be affected badly, it won't be hit like all these highly priced markers that you see all around. But I look at them too. And when I look at the situation, the macro situation, I know that they are also going to go up and they're in a bubble.

13:53And we haven't seen that bubble burst like a lot of people are saying, haven't really even got going yet. So, but that'll be in other videos. The FTSE is on its way. You can see it in the chart. Take a look at that chart that's a bullish charm and that means lots of profits to be had anyway, thanks very much for watching please subscribe and like I need to get my subscribers up and I need to get my traffic up so I can do more videos because obviously the the more people watch the more I want to do videos. So if you're not subscribed subscribe if you haven't liked like and if you haven't told your mates tell your mates and come on down to a new FN.

14:32There's lots of fantastic value there. Tell your mates about that too because you know you can get fantastic quality professional level tools as your private investor for free. You don't have to pay £1000, it's £1000 out there and you're trading about level 2 really. Anyway, come on down, see you soon. Bye now.