Is the stock market over heating?

SnowMan

Jack Bogle on the stock market rally

http://www.cnbc.com/id/100751484

blahblahdoh

Glen_Clark wrote: »

So why do they keep buying at these prices?

For the dividends, because interest rates are below inflation?

Thrugelmir

Glen_Clark wrote: »

And finally the biggest scam of all - Osborne's Help To Buy (Votes) Scheme. They all seem to agree that is going to cause big problems at some point.

More political than economic.

No one complained when Northern Rock and Bradford & Bingley were nationalised.

Nor that after the rescue of the banks in 2008. UK taxpayers were effectively on the hook for £600 billion of mortgage debt. NRAM still has £69 billion to be repaid. Much poor quality debt.

The biggest problem is how the UK will cope with going cold turkey to kick the debt addiction.

srcandas

srcandas wrote: »

Must admit can't wait to see it

Didn't have to wait long. Just a few doubts from Mr B and some bad china production figures.

2-3% for most at the moment in Asia but 7%+ in Japan. And a strengthening US$.

So will it be a blip shrugged off in a day or is it the trigger for a 5% or more drop?

Will be interesting the next 48 hours

jabba42

http://www.marketwatch.com/story/tokyo-stocks-soar-as-sydney-seoul-retreat-2013-05-22

here we go.

robtgossard

Stock markets are on fire but it’s not a new phenomenon. You just need to speculate, analyze, research before you surrender all your investments.

bertpalmer

Ugh. Really? Now! Just as I invest the last few K in to my ISA?

redbuzzard

Oh well. It's been a good run. At least I reduced my Japan index by 50% last month, and yesterday the sale of half the remaining UK & Amercan index funds in my SIPP executed, the proceeds currently being switched into two Ruffer funds. That was the second tranche, the last one went into IP Distribution and Standard Life GARS.

Yesterday I had "buyer's remorse" and wondered if I had lost my bottle and gone too far. Now I am wondering why I hadn't the courage of my convictions and gone the whole hog.;)

Actually, I don't think this is it...yet. But we'll see if we wait:cool:

Flock of Sheep has now been proved a genius.

In, profit, out, crash.:beer:

Jegersmart

blahblahdoh wrote: »

For the dividends, because interest rates are below inflation?

People always underestimate risk. Yes, the yield is higher but the capital is at risk. The markets have been climbing steadily and people forget or ignore that the opposite will also happen.

J

srcandas

redbuzzard wrote: »

Actually, I don't think this is it...yet. But we'll see if we wait:cool:

That is o so true redbuzzard. Interesting that the US realised the initial reading of Mr Bs words was not right and went negative last night.

But possibly more important was the Chinese factory output fall - first in seven months.

I'm thinking it all now depends on the next lot of headlines. Bad Euro news might make it serious, good Euro news might just turn it into a minor blip.

But if we get a proper correction where will the buying opportunities be? I'm guessing not the FTSE100. And sadly not Natural Resources despite them not being part of the recent rises.

But opportunities there will be. What great fun this all is :cool: