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Is the stock market over heating?

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  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Any wrote: »
    And if you are in funds, great reason to have some with good managers. The managers should know better then your normal common human being when is the best time to sell or swap to minimise the losses..

    Discounts on many investment trusts have evaporated. So far harder to find good value.
  • grizzly1911
    grizzly1911 Posts: 9,965 Forumite
    Thrugelmir wrote: »
    "Sell in May and go away; don't come back till St Leger Day"

    Proven as far back as 1694.

    Last year?

    http://www.telegraph.co.uk/finance/personalfinance/investing/shares/9544548/Buy-again-St-Leger-Day-It-didnt-work-this-year.html

    It was as clear as mud then too.
    "If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....

    "big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham
  • cepheus
    cepheus Posts: 20,053 Forumite
    It's unusual for markets to go straight down after a peak, they usually jiggle around a bit before the bulls and straw clingers are shaken out. Certainly a market founded on 'printed money' and low interest rates was always going to be volatile .
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic

    Central Bank intervention around the globe won't last for ever.
  • Ark_Welder
    Ark_Welder Posts: 1,878 Forumite
    Shares rose in 29 of the past 50 years from May to September, a 58 per cent success rate
    FT (May 2012): Only bears sell in May
    Living for tomorrow might mean that you survive the day after.
    It is always different this time. The only thing that is the same is the outcome.
    Portfolios are like personalities - one that is balanced is usually preferable.



  • pqrdef
    pqrdef Posts: 4,552 Forumite
    Any wrote: »
    And if you are in funds, great reason to have some with good managers. The managers should know better then your normal common human being when is the best time to sell or swap to minimise the losses..
    So what are they going to buy? They can only rebalance within their sector.

    Woodford is selling exposure to equities, not cash. If you don't want to be in equities, that's your option not his.
    "It will take, five, 10, 15 years to get back to where we need to be. But it's no longer the individual banks that are in the wrong, it's the banking industry as a whole." - Steven Cooper, head of personal and business banking at Barclays, talking to Martin Lewis
  • pqrdef
    pqrdef Posts: 4,552 Forumite
    Thrugelmir wrote: »
    Central Bank intervention around the globe won't last for ever.
    It could be the new normal. The G7 might decide they'll all have permanent built-in inflation of 5% a year. indefinitely.
    "It will take, five, 10, 15 years to get back to where we need to be. But it's no longer the individual banks that are in the wrong, it's the banking industry as a whole." - Steven Cooper, head of personal and business banking at Barclays, talking to Martin Lewis
  • A_Flock_Of_Sheep
    A_Flock_Of_Sheep Posts: 5,332 Forumite
    Tenth Anniversary 1,000 Posts Combo Breaker PPI Party Pooper
    OK so after today's experience on the markets I am still not clear on reasons. I will explain what I mean.

    Man in USA opens gob and china slow down = Nikkei down by over 7% :eek: and FTSE 100 down by 2.10

    What I am missing is why this should cause this downturn and what caused it.

    Sorry if I annoy you with my questions!
  • gadgetmind
    gadgetmind Posts: 11,130 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    What I am missing is why this should cause this downturn and what caused it.

    It's noise, it happens, and it's best ignored.

    Unless you really do have a good feel for which asset classes and territories will do best over the next 1-2 years, just stick to your target allocation and chill.

    Investors who watch the news flow and react in what they think is the best way are nearly always their own worst enemies.
    I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.

    Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.
  • A_Flock_Of_Sheep
    A_Flock_Of_Sheep Posts: 5,332 Forumite
    Tenth Anniversary 1,000 Posts Combo Breaker PPI Party Pooper
    gadgetmind wrote: »
    It's noise, it happens, and it's best ignored.

    Unless you really do have a good feel for which asset classes and territories will do best over the next 1-2 years, just stick to your target allocation and chill.

    Investors who watch the news flow and react in what they think is the best way are nearly always their own worst enemies.

    So basically loads of people decided to sell on the basis of an American mouthing off and china slowing down? What reasons would they have to decide to sell? This mass selling caused the downturn?
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