Why Are Investors Ignoring Warnings About Stock Market Highs?

Discussion in 'General Trading Discussion' started by longtermbull, Aug 13, 2017.

  1. longtermbull

    longtermbull Administrator Staff Member

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    Over the last few weeks we have seen a number of prominent financial experts such as Alan Greenspan suggesting that various elements of the US investment markets are in danger of collapse. As a former chairman of the Federal Reserve Alan Greenspan has been there and done it and perhaps investors should be a little more welcoming of his views? He’s not the only one to pour scorn on the ongoing rise in US stock markets but so far investors appear to be ignoring these warnings.

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  2. JR Ewing

    JR Ewing Super Moderator Staff Member

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    I always try to keep a fair amount of cash on hand, and to be somewhat hedged.

    Put options on more volatile stocks, and a few bucks in investment vehicles such as SH, GLD, etc can be useful.
     
  3. ciao

    ciao Senior Investor

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    when those ppl talk I do the opposite....;):) :D

    otherwise like JR trade with the head on..... always ready to any market change...
    for those few minutes that I stay in a stocks a retrace doesn't effect me .... but there always are stocks that goes up even on a catastrophe..... few weeks ago I bought some option on GOLD .. I am on the money so I am ready :D:D
     
  4. gowiththeflow

    gowiththeflow Senior Investor

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    Gold might be the best trade at the moment with geopolitical uncertainty and the race wars in the US. Flight to safety?
     
  5. ciao

    ciao Senior Investor

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    Hiya Gowiththeflow I would like to hear-post more on stocks rather then politics so we might learn something new ;):D
     
  6. longtermbull

    longtermbull Administrator Staff Member

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    Personally I think markets are taking a lot on trust - if the economy takes a breather I can see short to medium term valuations looking extremely stretched which could prompt a sell off.
     
  7. ciao

    ciao Senior Investor

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    agree but it keep going up..... I got myself some Gold options just in case ;):)
    then it doesn't effect me if ever the "bubble bust" ... all my positions are close within the day :)
     
  8. longtermbull

    longtermbull Administrator Staff Member

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    Gold is a very useful hedge against a sell off in the short term. While I do think markets are looking stretched, nobody alive to day was investing at the time of the great crash in 1929. How do you value markets against such low interest rates? Companies and individuals would be foolish not to make use of low cost finance while it lasts but when interest rates move higher will they be able to afford the higher interest payments?
     
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