2009 Review
FTSE 100 gained 22% over the year ending at 5418. A staggering 56% increase from March to the year end. The record growth since 1997. Euro exhange rate up from 1.02 to 1.12, which represents some comfort to expats in Spain, but I am sure they would prefer to see it go higher. Despite Mr Zapatero’s comments, Spain will continue in the doldrums for quite some time.
FTSE 100 index back over 5,000
The pyschological barrier has now been reached and the £/€ exchange rate has started to climb again. Things therefore, appear to be moving in the right direction. Time , I think to start getting back into the markets, and away from low interest bank deposits
Sterling gains against the Euro wiped out
Just when the many pensioners in Spain, who receive UK pensions, were thinking that things were on the up, as the Euro exchange rate hit 1.18 to the pound, it has slipped back to 1.14, based on commercial rates. Anyone on holiday, who needs to get hold of Euros, will now get less for their money. While the FTSE 100 is hovering around the 4,900 mark (slightly down today) there is still hope that the economy is starting to move in the right direction. Unemployment in the UK is at 3.3 million (estimated) or if you believe one English newspaper it is nearer 6 million.
Some people suggest Spain may take another 5 years befoe seeeing serious recovery in the property market, which will mean plenty of bargains for some time for would be investors in property.
