hi all, I'm new to share trading and have what I consider a very important question. I'm looking for advice/signs of what to look for not if but when we have another major stock market decline. US market decline, interest rates increase, property values. Do these have an impact on the Ozzie stock market. Thx in advance for sharing your experience.
Signs of stock market decline
- Thread starter Que
- Start date
galumay
learner
- Joined
- 17 September 2011
- Posts
- 3,415
- Reactions
- 2,251
I have just finished reading Howard Marks, "The Most Important Thing Illuminated" and he has some interesting insights into potential signs of an over heated market.
skc
Goldmember
- Joined
- 12 August 2008
- Posts
- 8,277
- Reactions
- 329
The recent mega mergers might be a decent sign. May be not Shell buying BG, as it's energy space specific... but FedEx and TNT? It's a clear sign of hgih optimism (and cheap money).
- Joined
- 12 April 2015
- Posts
- 57
- Reactions
- 1
Its pretty hard to pick a market top
But some good signs are
High use of margin / too much leverage
Interest Rates about to rise
Extreme optimism and ridiculous valuations
Goldman Sachs saying its time to buy
Lots of crappy ipos
But some good signs are
High use of margin / too much leverage
Interest Rates about to rise
Extreme optimism and ridiculous valuations
Goldman Sachs saying its time to buy
Lots of crappy ipos
- Joined
- 14 February 2005
- Posts
- 15,240
- Reactions
- 17,353
Widespread belief in a "new paradigm" driven by some underlying fundamental reason (eg new technology / science, recent huge growth in a nationally important major industry, etc).
High level of direct public involvement in the market (as distinct from institutions). Stocks become a weekend BBQ conversation topic along with football and the weather. You own shares, your boss owns shares and so does the cleaner.
Stocks in companies which not only aren't making a profit, but which don't even have a real ongoing business as such or which are clearly uncompetitive when compared to rivals in the same industry, keep going up and up.
Major "aspirational" projects being built on the back of excessive optimism and cheap money. Setting a new world record for the height of a skyscraper is the classic example, but also anything of a physical, permanent nature being built on the assumption of sustained growth.
High level of direct public involvement in the market (as distinct from institutions). Stocks become a weekend BBQ conversation topic along with football and the weather. You own shares, your boss owns shares and so does the cleaner.
Stocks in companies which not only aren't making a profit, but which don't even have a real ongoing business as such or which are clearly uncompetitive when compared to rivals in the same industry, keep going up and up.
Major "aspirational" projects being built on the back of excessive optimism and cheap money. Setting a new world record for the height of a skyscraper is the classic example, but also anything of a physical, permanent nature being built on the assumption of sustained growth.
Similar threads
