No one seems to want the FTSE 100 anymore

For some months now many leading analysts have been singing the virtues of the undervalued FTSE 100. There was of course good reason for that, given the multiples the index was trading at and its comparatively high dividend yield. So, on the face of it, that made the index a seemingly good bet, compared to much more expensive indexes elsewhere. So, for a while the FTSE seemed to be the darling of many fund managers looking for value and return. Well, not anymore it seems, especially since the UK budget the week before last. The FTSE 100 closed at 8,072.39 on Friday and that was its lowest daily close since August and perhaps more importantly it closed below its 200 day moving average (then at 8,101) for the first time since February. So, technically speaking that was not positive and the risks of more downside look possible, but not guaranteed of course. The failure of the index to react positively to the BOE base rate cut last Thursday would also seem to serve as a warning. FTSE 100 futures are higher this morning though and right now pricing a reopening this morning above 8,100