The worst thing investors can do is sell up, just in case. Something else common to every crash is that nobody can predict when it will happen. “Equity valuations are high but strong gains in earnings mean share prices still have some further upside.” Rupert Thompson, chief investment officer at Kingswood, is also confident.
#BUBBLE EXPLODE GAMESTOP PLUS#
“Although, I think some sections are, notably the NYSE FANG Plus index, which tracks the top 10 global tech giants.” Mr Jackson shares his view that the stock market is not yet in bubble terrain. “This was driven by high expectations for its technology, but subsequent events could not support the valuation.” Mr Garnry cites zero-emission vehicle company Nikola as a recent example, which soared more than 650 per cent in just two months last year.
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One of the early signs of a potential bubble is many-fold increase in the share price without obvious triggers such as revenue or earnings growth “Although they still rely on investors buying into a dream of continued strong growth into the future,” he says. US technology stocks have a good story to sell, as companies such as Apple, Amazon, Microsoft and Google-owner Alphabet are making real money, not just in people’s imaginations. For bubble behaviour to take hold, there has to be a “kernel of truth” behind it, Mr Jackson says. “We only ever hear about the winners, because no-one ever boasts about their losses,” Mr Bennett says.īubble rating: Too many are gambling instead of investing. Over Webex and Zoom, in chat rooms and even in socially distanced public places, you will read about and hear tales of the spectacular gains being made, sometimes in a matter of hours, on individual stocks.” “Share trading has become the latest crowd craze. Our natural survival mechanisms, honed over thousands of years, leave us prone to FOMO, Tim Bennett, head of education at investment company Killik & Co, says.
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We only ever hear about the winners, because no-one ever boasts about their losses