Alan Steel
01506 842365
MENU
  • Home
  • About Us
    • Close
    • About Us
    • What We Do
      • Close
      • What We Do
      • Our Services
      • Our Philosophy
      • Our Awards
      • Our Reputation
    • Who We Are
      • Close
      • Who We Are
      • Meet the team
    • Our Approach
    • Financial Planning
  • Testimonials
  • Investments
    • Close
    • Investments
    • Investment Advice
    • Portfolio Building
  • Pensions
    • Close
    • Pensions
    • Retirement Planning
    • Early Retirement
    • Pensions as simple as...
  • Tax
    • Close
    • Tax
    • Tax Advice
    • Tax Planning
    • When I'm Dead and Gone
    • Inheritance Tax
    • HMRC Digital Accounts
  • Insights & Media
    • Close
    • Insights & Media
    • Letters from Linlithgow
    • Informing You
    • Letter from America
    • See us in the Press
    • Master Investor
    • Points of Few
  • Contact Us
Independent financial advisers founded in 1975
Over £1.4 billion client funds under management
17 industry awards for advice since 1989

See us in the Press

Forgotten your canary? Here's when to flee the shares gold mine

Sunday, 16 April, 2017

The long stock market bull run has yielded juicy returns, but it will pay to know when it’s time to be more cautious

sundaytimes-064d 1e -2063-11e 7-96b 2-0db 44f 1c 9704

Lights in the dark: indicators that the bull run might be about to end include falling demand for loans, a drop in eurozone consumer confidence, and taxi drivers dishing out share tips

Despite an eight-year bull run, we remain very far away from the sort of popular enthusiasm for stock market investment that usually precedes a share price slump. For an example of how investor psychology fluctuates between fear and greed, driving equity values up and down, consider this observation from the shrewd stock picker Sir John Templeton: “Bull markets are born on pessimism, grow on scepticism, mature on optimism and die on euphoria.”

In other words, when the last pessimist — or “bear” — has become an optimist — a “bull” — there will be no buyers left to support share prices, let alone propel them higher. When sellers outnumber buyers, prices can only go down.

But even though markets are trading near record highs, the euphoria that defines the final stage of Templeton’s cycle still seems a long way off.

One indicator is the closure next month of Share Radio, Britain’s only specialist broadcaster for investors. Far from flocking to the station to hear about stocks, most folk never tuned in, turned on or dared to drop out of bank deposits.

Leaving the LSD enthusiast Timothy Leary to spin in his grave, I went in search of more sober analysis of what might happen next. Specifically, I asked several investment experts what signs would worry them that the current bull market might be running out of puff.  ……

……  Looking to the future, it is worrying when long-term bulls such as … Alan Steel predict a correction in the second half of this year. Steel, founder of the eponymous firm in Linlithgow, Scotland, has been poring over the charts and told me: “There is still scope for further rises until the summer, but caution is recommended after that.

“History shows that equity income funds ride out corrections better….”

Ian Cowie: Personal Account


Quote courtesy of The Sunday Times
Sunday 16 April 2017

©2023 Alan Steel Asset Management Limited is authorised & regulated by The Financial Conduct Authority. Please note that the Financial Conduct Authority does not regulate some forms of tax advice. Company Registration: SC58014

You should remember that the value of an investment and the income from it could go down as well as up. The return at the end of the investment period is not guaranteed and you may get back less than you originally invested.

The investment services and/or investments referred to in this website may not be suitable for you. If you are unsure we suggest you contact us to discuss matters further. If we believe our services are not right for you we will tell you.

When investing money, whether for income or growth, you are placing your capital at risk as the value of investments may vary, so you could get back less than you started with.

The Financial Conduct Authority does not regulate Tax Advice, Trusts or wills. Alan Steel Asset Management Limited is authorised and regulated by the Financial Conduct Authority. The guidance contained in this website is subject to the regulatory regime of the UK.

The Financial Ombudsman Service (FOS) is an agency for arbitrating on unresolved complaints between regulated firms and their clients.

FOS details can be found at www.financial-ombudsman.org.uk

Alan Steel Asset Management Limited are not responsible for the content of external sites.

  • Cookie Policy
  • Privacy Policy
  • Website terms and conditions
  • Tax Services Privacy Notice
  • Contact Us

This site uses cookies. By using this site you agree to the use of cookies. Read our Cookie Policy