I see no market crash, says founder of FTSE 100 broker

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According to the message from the co-founder of one of the largest stockbrokers around Britain, Peter Hargreaves, the prices are still low, so the market still isn’t in its best condition.

The co-founder of Hargreaves Lansdown says he doesn’t listen to the experts saying there will be a crash, still having almost all his £2 billion invested into the market.

The 70-year-old businessman says that the bad thing is in the marketplace. He thinks that the stock market is just cheap, that’s all. By the way, Mr Hargreaves was voting for Brexit and is not afraid of economy troubles.

He pointed out that 4/5 of the FTSE 100’s income is coming from overseas, and it makes the dangers for investors who contribute to the economy of the country minimum.

During the latest months, world equity markets have been playing with records, like FTSE 100 not going for its all-time high by closing on Friday at the index of 6,996.26.

The number, and size, of international takeovers and mergers is also booming. Last week AT&T agreed an $85.4bn (£70bn) deal to buy Time Warner that will take the American mobile phone operator into television production.

The combination of high share prices and audacious deal-making has led some experts to predict a sharp economic and stock market correction in the next few months. Hedge fund boss Crispin Odey, who predicted the 2008 financial crisis, has been particularly bearish, positioning his flagship Odey European fund for a downturn. This has turned out to be a terrible bet so far, though. The fund is down 42% this year, according to HSBC.

Hargreaves set up his FTSE 100 financial services empire from a spare bedroom in Bristol in 1981 with Stephen Lansdown. He donated £3.2m to the campaign to leave the EU.

The retired chief executive is “extremely excited about Brexit” and believes it will be “good for the stock market”.

He still owns a 32% stake in Hargreaves Lansdown, worth about £1.8bn, and has a large portfolio of other stocks. “Apart from a bit of cash, I’m fully invested personally in the stock market. I have no fixed income. All my family trusts are fully invested [in equities].”

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