It is well known that the FTSE 100 index of the 100 largest quoted UK companies by market capitalisation is no longer a barometer of the UK economy. Here is a quick reminder why.

1. 45% of the index is just 3 sectors, 19% is oil and gas, 15% resources mainly mining and 11% banks.
2. Just 26 stocks account for 45% of the index.
3. If you add in the pharmaceutical and household goods sectors then 5 sectors account for nearly 60% of the index.

Finally, remember that 70% of the index’s earnings are generated overseas.