FTSE 100 Leading The S&P 500 For The Next Bull Run?

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A strong start to 2023 for The FTSE 100 which is trading at levels last seen in 2018. What does this mean for UK stocks?

Regardless of what you think/want/need/wish to happen (remember, the market does not care), the UK stock market is showing a strong sign of recovery, and it may take the US market with it.

Usually, the US market tends to lead, and the UK follows, but currently, it is the other way around.

The FTSE 100 has increased 16% since October, 4% so far at the start of 2023 and is now trading just 2% short of its current all-time high.

Below is the monthly timeframe of the FTSE 100

The S&P 500 is sat 12% from the low of October, moved 2% up this year and 23% away from its current all-time high.

Below is the monthly timeframe of the S&P 500

My stance:

I am still standing aside and applying patience, waiting for the S&P 500 SPY to display further bullishness before buying back into the stock market.

I talk about this in detail in my previous article. The market is close to potentially setting up for the next bull run. 

Patience is a key investor skill that few adopt and which we maybe seeing early signs of being rewarded. Remember, you do not want a depleted broker account trading the wrong market conditions by the time the right conditions appear. 

As the saying goes, standing aside is also a position. 

I make up for 'lost time' through the power of compounding my winning positions.

This is how I protect capital and keep losses to a minimum whilst my profit grows exponentially.

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I take the stance that the High Street is disconnected from Wall Street. In short, the stock market will rally whilst the world gets distracted by the Roman Circus.

Life is certainly tough out there, but the stock market is how you protect yourself against that.

The rich have always used the financial markets to get richer. However, they did not anticipate the creation of the internet to level the playing field. The Roman Circus has naturally leveraged the internet to hide in plain sight.

  • 'Trading experts' are everywhere.
  • Day trading and the promise of quick riches are rife.
  • The talk of AI taking over the world is the new craze.
  • Athletes, the modern-day gladiators, getting paid mind-boggling sums of money.

Meanwhile, the stock market rallies, which the majority hard-working population misses and realises once it's too late.

This is what you do:

  • Stay informed but don't let them distract you.
  • The human in you must be separated from the investor in you.
  • When the market sets up for the next bull run, you MUST be ready. 

Regret is simply not an option.

See you in my next update.

 

Featured image sourced from Shutterstock
 

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Posted In: OpinionTrading IdeascontributorsFTSE 100S&P 500
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