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The FTSE 100 does not need Draconian government intervention

Many pundits and analysts have been arguing for UK legislation to drive flow back into the beleaguered UK equity space. Namely that surrounds suggestions the government should drive retail investor flow back into UK equities, by removing ISA based savings tax-breaks from overseas investments. That, I would argue is possibly one of the daftest suggestions yet, when it comes to such things. Without going into detail here, it smacks of desperation too. What the FTSE really needs is tech and in the absence of that it has lagged, without the support of lower interest rates in the UK. Right now UK investors prefer the safety of cash yields, which remain above that of the FTSE 100 dividend yield. So, the FTSE 100 remains the weakest major global index, as records continue to be set in the US, Japan, Germany and France. The FTSE 100 did close higher on Friday though, but it could not end above 7,700. It closed 52 points higher, at 7,682. The futures price is right now indicating a reopening at around 7,675
 

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