I was convinced a year ago that many of the major global indices were over-valued and needed to see a significant pullback. Well, clearly I was wrong on that front... In the UK, the FTSE 100 hit a new high yesterday. Markets aren't cheap but money still seems to be going into them. Is there still value in the UK market?
Yeah, if there's any value to be had at the moment it's Europe that's going to provide it. As long as Greece keeps providing the negative noise (and they're very good at doing that at the moment), the more opportunities there are going to be.
I too thought that the market was a bit overvalued a year ago. That is mainly why I practice dollar cost averaging... that is investing X amount each month regardless of the situation. And ofc I dig deeper into my cash reserves and/or get an investment loan when the prices are significantly lower. I though it was overvalued a year ago, I think it's overvalued now but I'm still buying a little. Only have one company from London though.. and even that is a Canadian one that is listed in London for some strange reason.
Yeah, dollar cost averaging is always a decent strategy if it's applied consistently and correctly, without excessive transaction costs. In an ideal scenario I would rather be able to weight bigger contributions at a cheaper market valuation and a weaker market performance.
That is why you should always keep some sort of cash account on the side, so you can profit from the dips. Or you can always take out a loan (most brokers make it really simple and the rates aren't that bad either) but that is of course a much riskier move so it's not for everyone.
Oh poor Greece. But yes, Europe is going to be the place to be looking in to for the foreseeable future.
I very much disagree. Europe is going down and it's going down fast. That will, of course, allow for some good buying opportunities but I'm not really sure if the region will be able to bounce back that well... it's the socialistic mindset of most of the political leaders that I'm worried about. That is just not a healthy environment for investors or companies.
I have noticed that the value of the Euro is going down, but that also ups the value of tourism. Many people from other countries are going to be able to visit European countries now that the cost is cheaper to be there. I see some good investments within the tourism industry, but I understand and somewhat agree with what you're saying.