Is the stock market over heating?

TCA

Anybody tempted to pile a bit in before tomorrow given 2-3% drops across markets today? I ask because I might bring my monthly investment forward but am wary of catching the falling knife......

A_Flock_Of_Sheep

TCA wrote: »

Anybody tempted to pile a bit in before tomorrow given 2-3% drops across markets today? I ask because I might bring my monthly investment forward but am wary of catching the falling knife......

Not sure. I am now thinking of launching into LSE: HFEL and/or LSE: SOI

gadgetmind

marathonic wrote: »

Little did I know when I posted this that my pension transfer was going to take so long.

Well, I did tell you!

marathonic

gadgetmind wrote: »

Well, I did tell you!

You did indeed....

Luckily, it paid off in my case - but I'd imagine it doesn't it most. Looking at the YTD FTSE chart, I realise exactly how lucky I've been (missed selling at the peak by two days).

Of course, it could drop another 20%, or more, after I get back in tomorrow but I'm happy enough anyway.

The YTD return now on the FTSE is about 4.5% - which is sustainable. The YTD return at the peak was 16% :eek: Of course, that could have held, or continued, too.

I've taken note of what my chosen funds were priced at when I moved to cash so it'll be interesting to know the final percentage of my 'once in a lifetime' movement of my pension to 100% cash (unless, of course, I move jobs).

marathonic

lvader wrote: »

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.

Some good choices in there. I've got a High Yield Watchlist set up in my Google account. Of the above, it includes BLT and Morrisons. The others are below:

Admiral Group plc ADM 1292.59
BAE Systems plc BA 394.17
BHP Billiton plc BLT 1732.5
GlaxoSmithKline plc GSK 1608.84
HSBC Holdings plc HSBA 664.43
Imperial Tobacco Group PLC IMT 2319.53
Royal Dutch Shell Plc RDSB 2152.96
SSE PLC SSE 1500.15
Wm. Morrison Supermarkets plc MRW 261.87
Vodafone Group plc VOD 178.72

The problem is, aside from my pension, I'm rebuilding my emergency fund after a house purchase in December. It'll take me a while to do that so it'll probably be next year before I can start looking at individual stock selection again (*). Most of my past experience in single stock selection has been in US markets, including the sale of Options.

(*) The temptation is there after such drops to forget about the emergency fund and invest - but I know that's a bad idea considering that there could be another 20% fall before the winter, at which point, my boiler could break down. I'd cry selling after another 20% drop.

Barcap

Hope the market tanks for the first halve of the day, getting around £7,000 from bp today more shares for your money.. main holdings.. don't care this is all noise. traders gotta make a living

chucknorris

Glen_Clark wrote: »

You have said it yourself in the first part of your sentence. You should invest a bit in bonds and commodities because you don't have anything in them. We don't know which way commodity or other prices will go so just follow the golden rule: diversify & chill

That for me isn't a strong enough argument to invest, I can't see any added value. I can see the added value in buying more shares (in trackers) and balancing my portfolio because the opportunity cost is minimal but the eventual gain could be a lot higher (time is on my side) and tax free.

A_Flock_Of_Sheep

Neil Woodford speaks of Diworseification

On the radio it sounds like the asssssssss is about to totally drop out of the Emerging Markets so I think I will hold fire on them. I am not overly concerned about holding EM but will if the landscape looks favourable.

Forever

I have a lump sum that I would like to invest in the stock market so I was feeling rather happy with the recent small dips. I have even had the joy of planning which pots I was going to potentially throw my cash in. Then low and behold, the markets are all shooting up again!

Typical. Why can't they crash big-time briefly before they go shooting up?

Oh well, at least I benefited from the lower prices for some equities in Asia yesterday. It's just a shame that it looks like I've now missed the boat for anything else

marathonic

Forever wrote: »

I have a lump sum that I would like to invest in the stock market so I was feeling rather happy with the recent small dips. I have even had the joy of planning which pots I was going to potentially throw my cash in. Then low and behold, the markets are all shooting up again!

Typical. Why can't they crash big-time briefly before they go shooting up?

Oh well, at least I benefited from the lower prices for some equities in Asia yesterday. It's just a shame that it looks like I've now missed the boat for anything else

But they've only gone about by a third of yesterdays huge drop. My investment will be based on the price at midday today so I'm hoping for a little drop from here - but no drop or rise is going to make me reluctant to invest today (and even if it did, the wheels are already in motion so there's no pulling out now).

Edit: Missed the hint of sarcasm in your post