Nose Bleed Territory

By: | Tags: | Comments: 0 | November 11th, 2014

It was also reported in the Daily Telegraph on 19th June that the amount of money held in British shares by private investors had hit a post-financial crisis record. Apparently, over the past eighteen months, more than £3 billion has poured into UK shares, indicating a significant return of investor confidence. We have seen this lemming-like behaviour all too often in the past and it was reported that one prominent fund manager commented “Fear has unquestionably surrendered to greed and stock markets look more expensive than at any time since 2007. Many stocks are trading on, in our opinion, nose bleed valuations”.

Wealth Managers are reporting that clients are clamouring to take on more risk in portfolios at a time when serious questions are being asked about the continued longevity of this Bull Run. Look under the bonnet and we see that the economic outlook is mixed. The desire for greater risk and potentially higher returns is understandable, given the paltry rates of interest available in the traditional safe havens of cash and fixed income. Investment management is not as easy as it can be made to look and private investors should be wary of demanding jam today for fear of ending up with only bread and butter tomorrow.

If you are at all concerned about the exposure of your pensions and savings to higher risk asset classes at the present time, then please contact us for a review and assessment of how your current asset mix meets your risk profile.