FTSE UK local index

[stone]

Possibly the PP strategy would be best served by using a stock index linked to domestic prosperity. BUT in the UK that would have led to massive losses in stocks in recent years. 
http://www.ft.com/cms/s/0/1ce592be-16bd ... z1ezkSxbR1
The index has become a ragtag of foreign miners, British oil companies operating abroad and banks – something no one would invent if it did not already exist. The Footsie really measures the success of the London Stock Exchange in attracting new large flotations.
Should investors try to gain exposure to the UK by buying companies focused on Britain instead? If they had, they would be crying into their afternoon tea. As Absolute Strategy Research points out, UK-exposed companies have fallen far more in the past decade, and been more volatile.
The FTSE UK local index, which includes only companies with 70 per cent or more of their turnover from the UK, has fallen 45 per cent since it started in 1999.

[murphy_p_t]

for PP purposes, have you deviated from the FTSE UK local index? what are you using?

[stone]

murphy-p-t, I've not really attempted to keep my stock part local; I just asked about this because I thought the reality of the total London listed stocks was so different from that envisioned for the  "economic condition"  for the PP. The recommended  FTSE all share index  actually means holding Kazahk miners etc.
What I've done is to have an equal third of the stock part in each of three investment trusts. CTY is London listed blue chip dividend stocks, BRSC is London listed small companies (many being exporters or working abroad and many on the AIM market so not included in the FTSE all share index) and TEM is emerging markets. The three investment trusts I'm holding seem to move around in price relative to each other but also none of them move together with LTT or gold any more than the FTSEall share index does. I sort of hope that they together do what the stock part of the PP is supposed to do. IMO it would be very brave indeed to have all the stock part as the FTSE UK local index.

[gizmo_rat]

for PP purposes, have you deviated from the FTSE UK local index? what are you using?

On the face of it finding / using a FTSE Local UK index fund would be difficult as the FTSE Local UK index doesn't seem to be widely used. Pragmatically it would be a difficult case to make as all the cheap index funds are FTSE 100 / 250 / All share.

The article does make you think about what prosperity isolated to the UK would look like, hens teeth I expect.

[magneto]

for PP purposes, have you deviated from the FTSE UK local index? what are you using?

On the face of it finding / using a FTSE Local UK index fund would be difficult as the FTSE Local UK index doesn't seem to be widely used. Pragmatically it would be a difficult case to make as all the cheap index funds are FTSE 100 / 250 / All share.

The article does make you think about what prosperity isolated to the UK would look like, hens teeth I expect.

The mid 250 is often stated as being a nearer proxy for the UK economy.  However many of the mid companies are succesful exporters so MIDD or similar would not be targeted solely on the UK economy, but is more representative of the health of the UK than the peculiar mix we now have in the FTSE100.