Posts tagged Double

For the UK, GDP figures have confirmed that the UK is in a double-dip recession (link). This news may have had more of an affect on the markets if everyone wasn’t so excited by the Euro news which raises the question, ‘is this a fickle rally?’. If the UK is still in recession then surely when this good news wears off nothing will have changed?

Well, the answer depends on your point of view. Fundamentalists might say that until the underlying issues with the UK economy are fixed, any market rallies will be short-lived. Another way of looking at it requires a pinch more optimism and a belief in positive feedback loops. If I look at my portfolio before leaving work on Friday and it is up 1.44% (like the FTSE 100 at the time of writing - FTSE100 quote) I might be a bit happier this weekend. That might mean that I decide I will eat out tonight, book that holiday or buy that television, which, in turn, might mean that businesses make more money this weekend, which in turn will create growth.

Who knows what people will decide to do this weekend and who knows whether the Fundamentalist or the Optimist will prevail, one can only hope.