Is the stock market over heating?

SnowMan

Good article on the Telegraph website looking at the outlook for different asset classes, in particular a reasoned analysis of the outlook for gilts.

sabretoothtigger

Yet to think this, you also have to believe that economic growth is going to return quickly to more normalised levels, and with it the general investment and interest rate climate. This continues to look quite unlikely, and certainly there is no real expectation of it as yet reflected in forward interest rates.

This is where it goes wrong. UK is a sand castle sitting at low tide, it could be the finest ever made but it wouldnt be good enough to float. We dont even make up 1% of the world yet these arguments rest on definitions that are self set instead of reflecting we are very much a minority.

veryintrigued

veryintrigued wrote: »

Mixed feelings. I've investments which rely on sustained growth of the markets but I've also got an investment whose return depends on the FTSE ending each day within % bands of a 'start point'. Hence these recent 'corrections' are very welcome.

So the FTSE 100 is now back at the level I bought into a plan exactly 5 months ago (to the day). Its looking a lot more promising than it did do (for me at least) than it did do a month ago.

Mind you this thread (and a couple of others on here) have only firmed my view that no-one knows which the direction markets will go in the short term.

SolidShot

Ben Bernanke can not stop creating another $85Billion every month, all stocks will collapse. He talks about it sure but it will not stop. All that will happen is it will be over a trillion every single month soon.

marathonic

marathonic wrote: »

As I said earlier in this thread, I put a request to transfer my pension fund to 100% cash last Thursday and the request was only processed at the close of business Monday. Getting back in will take a similar amount of time.

Little did I know when I posted this that my pension transfer was going to take so long. Here I am, exactly one month to the day since moving to cash, still in cash.

I queried why the transfer was taking so long and got confirmation today from my new provider that they have received the funds and they will be invested at the bid price of my chosen funds at midday tomorrow.

That gives me one more day to hope for a further shock to the markets before I'm fully invested again. I'll not be back in cash again until I transfer companies again - and I don't see that happening for many years.

I'm happy to have missed out on about 8% of the drop, however big that drop turns out to be. I'm not really bothered about further drops either because I've 30+ years left to retirement and am continuing to invest on a monthly basis.

In fact, as I did in 2008, if this fall continues, I'll be increasing my monthly pension contributions significantly.

lvader

Today was a great day, i have a newly created SIPP with 90k cash transfered from a stake holders pension. I was like a kid in a sweet shop. 20k invested so far, plenty left for further drops.

A_Flock_Of_Sheep

What did you buy ivader?

This is the moment I have been waiting for!

Anyone reckon the ftse will nose dive to 4000?

How are the emerging markets fairing up?

lvader

I have a target of 25% commodities and I'm really light at the moment so it was great to hoover up some XEL, RIO, BLT, EVRA. I also bought a couple of Asia and EM funds, BLND, TSCO, Morrisons, VOD and STAN.

veryintrigued

A_Flock_Of_Sheep wrote: »

What did you buy ivader?

This is the moment I have been waiting for!

Anyone reckon the ftse will nose dive to 4000?

How are the emerging markets fairing up?

Wowzer!!

:shocked:

lvader

I think there is too much money and no where for it to go for the FTSE to drop to 4000, maybe a short lived drop to the low 5000’s.