RE: Are we just in a terminal decline21 Aug 2023 13:02
The FTSE has 2 major problems.
1. No tech firms
2. The most miserable stock analysts in the world live in London
The FTSE is trapped in a chicken-egg situation. Where the UK has literally zero big tech firms left -- because they have all been sold off abroad. And FTSE cannot attract large foreign tech firms to list in London, because they know the local stockmarket analysts and journalists will do a hatchet job on them and wreck their brand.
Take the upcoming ARM float, for example. Most US media is calling for a $50-100b valuation, lots of AI future hype, and an optimistic mood. By contrast, the main UK media is calling for just $20-50b, looking only at the past 5G slowdown, and there is an overwhelmingly pessimistic mood of doom, gloom and misery. You can see -- immediately -- why New York was chosen ahead of London.
Until we see a change in analyst and media culture, from misery to enthusiasm, the UK stockmarket is going to continue shrinking.