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The FTSE failed once again to soar about the coveted 7,000 mark. However, it closed at yet another record high again today, finishing at 6,961.14. As Maxwell Smart, the infamously inept spy from the mid-1960s TV program Get Smart, would say, “Missed it by that much!” If you weren’t around in the mid-60’s, ask your grandparents.
It’s frustrating to keep trying to hit a “golden mark,” like the four-minute mile. Because it had never been done before, the world was amazed when Roger Bannister actually did it – which, by the way, was 12 years before Maxwell Smart kept missing nearly everything by “that much.” Bannister had been close to four minutes on several occasions. It seemed like it he always “missed it by that much.” The mood at the time was one of great anticipation tempered by the notion that it was just too much for a human to achieve.
The crowd in the stadium at the Iffley Road Track in Oxford went absolutely crazy then the record-breaking time was announced. What had never been done before in the. A history of mankind (as far as we know) was, at long last done. Because four minutes had become such a prized target, people had become accustomed to disappointment every time he, or anyone else came close, but “missed it by that much.”
Even though many new records were being set as men moved closer to the goal, each record was accompanied by disappointment. That’s what it’s like with the FTSE 100 right now. People are bursting at the seams in anticipation of reaching 7,000, so their reaction to new records being set for the past couple of weeks is tempered by a greater degree of disparagement than delight.
Let’s get a grip on ourselves and put this thing into perspective.
Each day that brings a new record high should be celebrated. What kind of psychological malady would cause us to look at it any other way? Is 7,000 that significant, or is it just because it is a round number?
I don’t know whether 7,000 is as “impossible” as a four-minute mile, but they are both also similar in another regard – there are a large number of factors that come into play to reach the goal. For Bannister there were obstacles such as the wind (which was almost too strong for him to give it a try that day), the track conditions and his own fitness, just to name a few. For the FTSE there are at least 100 factors at work. And for each of those companies, there are multiplied underlying factors that can either give traders pause or cause them to drive share prices higher at any given time on any given trading day.
What happens once we break 7,000?
Huzzahs will be lifted, corks will pop and the faint of heart will – well, they’ll faint. But before the shouting subsides some will already be determining what the new “impossible” record will be. It could become 7,100 or 7,500. It’s got to be one of those two. It just depends upon which number seems to be more attainable. At any rate, here is the rub: The second time anyone ever ran a four-minute mile was just 46 days after Bannister did it. And before the mile was replaced with the 1,000 meters, the four-minute barrier was broken dozens of times. In fact, to win at world class competitions, a runner almost had to finish under four minutes. It became expected.
What I am trying to say is that we need to keep our heads in place. What still seems impossible today, may be possible tomorrow. Or maybe not. And if not, 6,962 will still be a new record. If it reaches 7,000, it probably won’t be the last time . . . and 7,000 could easily become the new normal.
