Markets have been generally on the up since 2009. We have been in what is known as a bull market, in which prices are generally rising. In a bull market investors typically act, well, bullishly. They take their cash and invest it in the market, confident that the value of stocks and shares either in general or the particular stocks and shares they have chosen will go up.
Currently, however, investors seem nervous despite the general upwards trend in markets. Some are reluctant to invest new money and wonder whether they should in fact reduce risk in their portfolio. Why should this be?
Much of it seems to be down to the negative news background, whether it’s Trump’s trade wars, the difficulties securing a Brexit deal, or speculation about rising interest rates. However, in recent times markets seem to have become detached from the ‘noise’ of the news and have been getting on with business as usual. When looking at the underlying strength of economies and companies, investment analysts are in general agreement that fundamentally global markets look to be in good shape. While this continues to be the case, we are unlikely to see a sell-off of stocks and shares.
Please note this article is not personal financial advice and should not be construed as advice to either buy, sell or hold any investment.