Is the stock market over heating?

Glen_Clark

jimjames wrote: »

Some interesting comments on markets and QE effects by Robert Peston here

http://www.bbc.co.uk/news/business-22870837

Good Link, Thanks.
Osborne is well aware of the effects of QE because when he was in opposition he called QE 'The Last Resort of Desperate Governments'
Quote from your link : Think of (QE) as feeding heroin to a junkie: as the addict tolerates bigger and bigger doses for longer and longer, it becomes progressively harder and more dangerous to wean the addict off

But I can't see Osborne even attempting to wean the addicts off QE before the next election because thats obviously his main concern after robbing the poor to give to the rich.

DunPin

A_Flock_Of_Sheep wrote: »

My sheepdog predicts that today the market will mostly be:

Down-diddly-down-down.

My prediction is 'up-diddly-up-up' seriously though, while the UK, US and main Asian markets are down, markets in the CIS and MENA are up.

At the end of the day, looking at my UK holdings, they are largely unaffected long term, if yours aren't then perhaps you picked the wrong companies/countries?

cepheus

I like this analogy

In the highly unlikely event that the Fed were to dramatically turn off the drip of cheap money, markets everywhere would go into economy-threatening paroxysms.

But the longer the drip is left on, the greater the probability that a reduction in the doses at some point in the future would lead to calamity in markets and economy.

Think of it as feeding heroin to a junkie: as the addict tolerates bigger and bigger doses for longer and longer, it becomes progressively harder and more dangerous to wean the addict off.

The overwhelmingly big thing on the minds of central banks is how to break markets' addiction to cheap-money junk, without killing the patient. If they make a start this year, and chances are they will, there is reason to be more than a little anxious

I notice the Japanese market was in meltdown overnight and another hundred points is off the FTSE100 grey market.

A_Flock_Of_Sheep

This morning my faithful sheepdog predicts:

We're goin' deeper underground
We're gonna go deeper
Got to go much deeeeepeeeer

yeah!

jabba42

http://www.cnbc.com/id/100811628

Bloodbath in Japan.

A_Flock_Of_Sheep

cepheus wrote: »

I like this analogy

I notice the Japanese market was in meltdown overnight and another hundred points is off the FTSE100 grey market.

Was it what you noticed or what you heard on Grecian television?

mystic_trev

gadgetmind wrote: »

However, I've started adding more to commercial property lately as there are still decent discounts around.

I recently bought into New River Retail (NRR) which have done quite nicely. Good divi, and still trading 10% below NAV

Sanchsoot49

A_Flock_Of_Sheep wrote: »

This morning my faithful sheepdog predicts:

We're goin' deeper underground
We're gonna go deeper
Got to go much deeeeepeeeer

yeah!

Have you been pinching his Bob Martins Flock?

jimjames

A_Flock_Of_Sheep wrote: »

This morning my faithful sheepdog predicts:

We're goin' deeper underground
We're gonna go deeper
Got to go much deeeeepeeeer

yeah!

Down is good for me.

Part way through an ISA transfer as cash, stock already sold at one end so if the market drops significantly that will allow me to buy more back when it gets to the new ISA.

jabba42

Down is good for me too as 90% in cash. You guys can laugh at me when it goes up again.