Is the stock market over heating?

Thrugelmir

A_Flock_Of_Sheep wrote: »

Just think if people were contracted to hold their investments for a minimum term say one or two years before being able to sell I wonder what sort of impact that would have on market speculators.

To achieve what precisely?

Everybody that owns shares is a speculator....... Irrespective of their time frame of investment.

sabretoothtigger

Anything under 5 years is a trader. My logic is that if you hold for less, the company does not get time to issue any reasonable amount of shares at the price you have prescribed to.
If they are not the ones issuing shares and you the one buying and it is just market traders you deal with then its really them you help not the company

of course indirectly a healthy market in their shares will help the company but thats trading vs investing, not so many of us hand our money to the company itself. like first group is doing a rights issue, that'd count and pretty dam low the share price is


on the OP the time to buy for a bullish market is today. Similarly to 4th april, we are due a bounce. Now Im told we are going to break down but here is where it should prove otherwise. I considered invesco perp buy today but i did not time my last sell well, so I will speculate on a lower price and buy on the way down

Shaolin_Monkey

A_Flock_Of_Sheep wrote: »

Just think if people were contracted to hold their investments for a minimum term say one or two years before being able to sell I wonder what sort of impact that would have on market speculators.

I think much fewer people would buy shares. If you were locked into a share no matter how adverse the news, you could just be forced to sit and watch as your investment disappeared down the pan. Also I would suggest liquidity would dry up making the cost of buying and selling much higher. For every buyer there's a seller, and in this case the only sellers would be those who had held the shares for the required period.

grizzly1911

A_Flock_Of_Sheep wrote: »

Just think if people were contracted to hold their investments for a minimum term say one or two years before being able to sell I wonder what sort of impact that would have on market speculators.

If it applied to Joe Punter in the street, doubt it would make much difference, it is institutional shareholders that pull the levers not us.

As monkey says who wouldn't gamble on along bet without knowing the odds up front. If the odds could vary at will, in the minimum term lock in period, very few would take the risk.

redbuzzard

The obvious way to reduce trading and speculation is an increase in transaction taxes. That would be a spectacularly stupid idea to impose on UK transactions as the extra taxes would ultimately be paid by us, or the transactions would simply migrate away to a friendlier tax regime.

Oh...hang on a minute...er...

A_Flock_Of_Sheep

I don't know but its very strange.

"Investors" (allegedly that's what they are) sell up before the US announces unemployment figures. As a result pull down the markets for people. US announces OK job figures and then these so called "investors" jump back on the bandwaggon again - which I assume is why the FTSE has just taken a leg up. How on earth is this Smarter Investing? Have they not read Tim Hale's book?

Don't these "investors" realise that all they are doing is lining the pockets of the industry croupiers jumping on and off the merry go round. Idiots!

The USA might issue worrying job figures. So what..... Why sell up and bring the system down... After all Glaxo will sill makes medicines, Tate and Lyle still makes ingredients, BT Still offers a phone TV and broadband service despite Americas jobless minions. So what the hell has USA employment figures got to do with them.

This stocks and shares lark is like taking a walk across Morecambe bay - safe bits, warning signs, shallow quick sand, fast unpredictable tides and deep quicksand that can pull you under unsuspectingly.

Thank you all for listening to my ramblings and thoughts. There is so much to learn. I know I have a very bearish outlook too. I guess I think of the awful financial crisis crash and what it did to the markets. Some noise I read seems to allude to the fact that now the FTSE is back up to the level it was before the crisis that it is now destined for another drop so will never really pass that level

Shaolin_Monkey

That's Mr Market at work..

A_Flock_Of_Sheep

Shaolin_Monkey wrote: »

That's Mr Market at work..

I know! I cant believe what a silly un-smart investor I really was when I started out. Listening to noise, reading articles of gloom etc etc etc.

Glastoun

Going by most of the posts on threads like these, shouldn't we all be buying shares in Tim Hale?

badger09

Glastoun wrote: »

Going by most of the posts on threads like these, shouldn't we all be buying shares in Tim Hale?

Definitely not, because he advises against 'Stock picking'

However, if there were such a product as a Tim Hale Global Index Tracker :rotfl: