Index Tracker Funds

jamesd

stinktankcynic wrote: »

There seems to be a frenzy on at the moment

Not really a frenzy, just some capital value growth.

stinktankcynic wrote: »

maybe fuelled by poor cash returns.

Some but there's still a huge amount in cash, gilts and high quality corporate bonds. The talk of a sector rotation from those into equities is starting up and that, whenever it happens, may well produce a frenzy. At the moment many markets are still at quite reasonable cyclically adjusted price/earnings ratios. Europe particularly.

stinktankcynic wrote: »

when is the big sell off coming?

Whenever the next recession after this one has been thoroughly recovered from. Though Greece exiting the Euro could easily produce a 20% drop.

stinktankcynic wrote: »

The economy isn't getting better, less money around and it's likely to get worse.

The economy globally is getting better and risk of getting substantially worse is decreasing. That's enough for stock markets, which look into the future for what will happen next - recovery - and rise initially before it happens.

We're nowhere near in as good a buying time as early 2009 but for many markets it's still a good time to be buying. Prices are certain to go up and down, of course, that's the nature of investments.

The next fuss may be mid March when the attention will be on the US debt limit negotiations and take three of budget talks.