As 2018 gets under way,there are clear signs that stocks are overvalued, but other factors are in play too. We expect two respected fund managers: whats next?Shares are expensive – keep buying them. That appears to be investors’ consensus view. The storming dash for stock markets in 2017 seemed nearly too pleasant to be trusted, or but 2018 has started in similar style.
In the US,the Dow Jones industrial average soared past 25000 last week, nearly exactly 12 months after 20000 was achieved. In the UK, and the FTSE 100 index stands at a record high. Even the Japanese market,for years an international laggard, is back at a 26-year high. Last year the MSCI World index a proxy for a global stock market – delivered a return of 20.1%. Optimists expect more of the same. The other camp warns that a uncertain bubble is about to burst.
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Source: guardian.co.uk