The FTSE 100 and the Dow Jones index, two of the most significant financial markets, today posted new highs for 2009. The FTSE 100 touched 5231.80 whilst the Dow Jones managed to reach a high of 9331.

Of course we’ve still got an awful long way to go before we get back to the giddy heights of 2007 when the FTSE 100 was in the 6700s and the Dow Jones was over 14000. However these are very encouraging signs, particularly as the global economies are still in the very early stages of their recovery.

To be honest I still believe the markets are due a retracement in the winter months before the recovery gets well and truly under way, but I’ve said that before and we are still creeping slowly upwards, so who knows?

One thing I do know is that I won’t be rushing in to buy shares at the moment because it’s still very risky. Companies are on high valuations at the moment and there is not an awful lot of value to be had in my opinion.

There’s arguably more value to be had by looking at commodities (and ETFs that track these commodities} that are trading close to multi-year lows such as wheat and natural gas.

 

 

Filed under: Indices

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