Accoding to wikipedia IG Group plc (LSE: IGG) is a British-based Company trading in financial derivatives and sports betting. While the majority of the company’s activities are based in the UK the Company has also expanded internationally. It is listed on the London Stock Exchange and is a constituent of the FTSE 250 Index. Tim Howkins is the chief executive of financial bookmaker IG Group, and had this to say to The Telegraph over in the UK:
Tim Howkins said he expects there to be further gloomy economic news around the world, causing the blue-chip index to fall to as low as 2,800 and Wall Street’s leading index to crash to 5,700. The FTSE 100 is now at 3898.8 and the Dow Jones is at 7810.2
“Those falls would be pretty apocalyptic from where the markets are now,” he said. “But the world is getting worse rather than better. There is still a lot of bad news to come from the global economy.
“The market seizes on any bit of good news and has a relief rally. The fundamentals are that world economics are pretty badly shot.”
Mr Howkins’ comments are also partly based on the trading patterns of IG’s 50,000 clients.
They are overwhelmingly betting on index movements, as opposed to on individual shares.
His predictions are worrying for stock market investors and pension funds, coming after the FTSE 100 has rallied 11pc and the Dow Jones has gained 19pc from this month’s lows.
Mr Howkins said he could not predict when exactly the global indices would tumble, but said it is likely to be due to a culmination of events or poor data.
“It could be next week, it could be six months away. It is most likely to happen if we have two or three different things coming together at once.”
You can read the whole thing here;
Now I’m no finaical expert but I do pay attenion to what the experts say and this stricks me as closer to the truth then what we are being told by the MSM groupies.