Alarm Bells - What would you do?

mrlegend123

Albermarle said:

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 ?

Safety being the best of both worlds regarding the risk level (not too high or low). 

barnstar2077

Personally I see 100% equities as the place to be at the moment.  I am in the accumulation phase however, so big dips don't bother me.

I don't see inflation being a problem for a few years yet.  We will see!

mrlegend123

barnstar2077 said:

<crystal ball time> I'm not saying that bonds are the place to be at the moment, but I don't think inflation is going to be doing much in the near future.

I think we will see inflation at 2-3% in the future 2022-23 but interest rates will not be jacked up. 

London7766551

My prediction last year was that the market would crash by the end of next month. So far it has not happened. As always, don't risk what you cannot afford to lose. 

barnstar2077

mrlegend123 said:

barnstar2077 said:

<crystal ball time> I'm not saying that bonds are the place to be at the moment, but I don't think inflation is going to be doing much in the near future.

I think we will see inflation at 2-3% in the future 2022-23 but interest rates will not be jacked up. 

That sounds pretty normal, I don't see it doing much.

Linton

mrlegend123 said:

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. 

My view is that on average it is counter-productive to try and guess what will happen in the future.  The losses you make when you are wrong will outweigh the extra gains made when you are right. Much better to invest with an allocation you feel comfortable with for the long term and keep to it.  A good choice for most people is a multi-asset fund at the right level of risk.

Most investment markets spend much of their time at highest-ever levels - that's what happens when prices rise in the long term. If investments didnt tend to rise in the long term you would be foolish to invest. at all.

So dont sell out.  Selling out when you fell uncomfortable is easy.  The difficult part is getting back in at a profit.

AlanP_2

mrlegend123 said:

AlanP_2 said:

Do you have some money invested in housing?

No, I don't like the BTL sector.

So warnings about the possibilty of a housing market bubble shouldn't worry you then.

Thrugelmir

mrlegend123 said:

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?

Well above long term real long term rates of return. Companies need to meet these profit expectations. 

mrlegend123

Thrugelmir said:

mrlegend123 said:

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?

Well above long term real long term rates of return. Companies need to meet these profit expectations. 

agree, that's why I am thinking about moving into the money markets for the while to see what happens over the next 12 months. I understand markets price in future earning hence the bullish feeling. I am feeling like a bear. 

dunroving

mrlegend123 said:

Thrugelmir said:

mrlegend123 said:

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?

Well above long term real long term rates of return. Companies need to meet these profit expectations. 

agree, that's why I am thinking about moving into the money markets for the while to see what happens over the next 12 months. I understand markets price in future earning hence the bullish feeling. I am feeling like a bear. 

What will you do if the markets continue to rise through 2021?