Will Stock Market Trend Sideways ?
Although there have been numerous warnings about the high valuation levels of the global stock markets (including from ourselves) – we have yet to see a firm indication of a stock market collapse. Instead the stock market appears to be entering a sideways trend.
If you are having trouble making progress with your investment portfolios, this could be the reason.
Sideways markets are notoriously difficult to navigate, so we would suggest that you diligently guard against unnecessary losses.
Take advice from your current adviser about the level of cash you should hold in your portfolio.
When markets are in a sideways trend, even standing still is preferable to losing ground.
We have recently written to our private clients advising then to change both the cash levels they hold and to change their asset allocation of their portfolios.
Remember Warren Buffet’s two rules for investors:
Rule 1) don’t lose money,
Rule 2) remember Rule 1.
Good luck with your investments!