Alarm Bells - What would you do?

mrlegend123

Recent warnings about the housing market (highest P/E), the stock market (highest P/E), bond market bubbles (yields rising). 

Best to cash out investments and go into short-term money markets for the next few months? I am currently now sat in multi-assets for safety. 

Hoping to bank my recent gains of 30-40% for 2020 and normal annualised gains of 8-9% for the past years. 

Albermarle

I am currently now sat in multi-assets for safety. 

If you are worried about share and bond markets , not sure why you would consider multi assets funds safe as they a blend of shares and bonds ?

jimjames

mrlegend123 said:

Recent warnings about the housing market (highest P/E), the stock market (highest P/E), bond market bubbles (yields rising). . 

Which stock market is trading at its highest P/E? It's not the UK

AlanP_2

Do you have some money invested in housing?

BananaRepublic

There will always be warnings, and there’s an awful lot of ‘a mega crash is imminent’ click bait about especially on YouTube. Yes the P/E and CAPE ratios are quite high for the US market but interest rates are low and the US is pumping money into the economy. Even the inventor of he CAPE ratio is relaxed about current valuations. 

Timing the market is hard. Pre 2008 the markets climbed for years despite warnings. Bailing out earlier would have been expensive. Generally markets crash in response to a shock, and they usually cannot be foreseen, only a few people saw the cause of the 2008 crash before the markets reacted. 

Keep a cash safety buffer, and stsy invested for the long term, if that is your goal. 

Apodemus

jimjames said:

mrlegend123 said:

Recent warnings about the housing market (highest P/E), the stock market (highest P/E), bond market bubbles (yields rising). . 

Which stock market is trading at its highest P/E? It's not the UK

Indeed!  ...and which bond markets are seeing rising yields!

Thrugelmir

mrlegend123 said:

Hoping to bank my recent gains of 30-40% for 2020 and normal annualised gains of 8-9% for the past years. 

If you believe that to be normal then you are in for a shock. 

mrlegend123

Thrugelmir said:

mrlegend123 said:

Hoping to bank my recent gains of 30-40% for 2020 and normal annualised gains of 8-9% for the past years. 

If you believe that to be normal then you are in for a shock. 

I just move my money around the different asset sectors using momentum investing. 
What you mean in for a shock?

mrlegend123

Apodemus said:

jimjames said:

mrlegend123 said:

Recent warnings about the housing market (highest P/E), the stock market (highest P/E), bond market bubbles (yields rising). . 

Which stock market is trading at its highest P/E? It's not the UK

Indeed!  ...and which bond markets are seeing rising yields!

I said it as a generic statement as I didn't want to list the bond markets. It's been in the news this week, threat of inflation. 

mrlegend123

Apodemus said:

jimjames said:

mrlegend123 said:

Recent warnings about the housing market (highest P/E), the stock market (highest P/E), bond market bubbles (yields rising). . 

Which stock market is trading at its highest P/E? It's not the UK

Indeed!  ...and which bond markets are seeing rising yields!

The US markets, other markets would normally follow it down. 
I know the S and P 500 is high and FTSE 100 is low for example, but would still go down as the dollar is the reserve currency. 

mrlegend123

AlanP_2 said:

Do you have some money invested in housing?

No, I don't like the BTL sector.