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Tuesday 8 July 2008

Are we in a "bear market" yet

The standard definition of a "bear market" is a market where the market price is at least 20% below a recent high. The FTSE 100 closed at 6,721.60 on 31 October 2007 so for a "bear market" to be declared I calculate the FTSE will have to reach 5,377.28; as of 14:45 this afternoon it is trading at 5,472.50, not far to go... and it will get there and fall a lot further too.

I see that just before 10:00 this morning the FTSE hit 5,358.70, so I guess that means we are in a "bear market", and may the FTSE have mercy on our wallets.

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