Stock Market 2022
- Thread starter Ponty
- Start date
Ponty
pfm Member
Trouble is, there are walls of cash seeking a return in a low interest rate, high inflation environment.
andyoz
pfm Member
At what stage does the inflation triggered by the Covid helicopter money drop eat into that cash pile? We've all seen the inflated asset purchases the last 18 months
Ponty
pfm Member
Christ knows. Any sign of further trouble and they’ll just print more. The #1 govt economic priority is house price growth.
andyoz
pfm Member
Yes, true about house prices. Sad state the world's got itself into...people's wealth is just some notional number in the banks IT system of what their house is worth on any particular day
Heckyman
pfm Member
True but in the financial markets it's cash that's been added to the system by governments and central banks. It could just as easily be taken away and then asset prices would fall in line with the reduced liquidity.
A larger percentage of people not being able to afford energy and food could cause a reassessment of priorities away from the stock/housing market. My friend in Spain says his energy bill has trebled in the last few months.
andyoz
pfm Member
I really think this year will be different to the last two. If inflation falls later this year they may have another chance/excuse to throw in liquidity. As it stands, they've been left with egg on their faces with incorrect inflation predictions all thru 2021.
andyoz
pfm Member
What are people doing re. SMT? I bought the last dip March 2021 at around 1000 and might add as looking to weight more into Trusts than individual shares. I'm also into FEET but not much else in terms of Trusts.
ARK's back to summer 2020 levels...the Queens been knocked off that thrown alright...
The 'Growth' story sure is dead in the water at the moment Hey. Funny that as I personally don't see the last two years as the most productive episode in human history.
ARK's back to summer 2020 levels...the Queens been knocked off that thrown alright...
The 'Growth' story sure is dead in the water at the moment Hey. Funny that as I personally don't see the last two years as the most productive episode in human history.
Ponty
pfm Member
Yes, the cost of living squeeze is going to take its toll, together with tax rises. Consumer spending figures will be key. Believe me, I’m a property bear and the last 20 years has proved me wrong. Thankfully I went against these instincts but it’s clear the govt will do almost anything to keep the bubble afloat, it wins elections.
NeilR
pfm Member
I think growth stocks will overshoot on the downside, so worth waiting a bit longer before buying more in my opinion.
Ponty
pfm Member
Think SMT also dipped under 1100 in May, remember topping up whilst waiting for a covid jab! As you’ll know, you need to give it a minimum 5 year timeframe. If you believe in their long term strategy, the inevitable dips are buying opportunities. The world will carry on evolving, irrespective of what financial markets are doing, and these guys will aim to back the right companies for growth, they certainly have good track record of doing so. I also like PCT (hold more than SMT), it’s a bit less volatile and they know what they’re doing.
andyoz
pfm Member
Actually, I do have PCT also (bought on the dip on advise from here).
Yes, these are SIPP stocks so long term holds. I will start feeding a bit more in gradually soon...
Heckyman
pfm Member
I would wait a bit and see what happens to inflation (especially US). Unless you believe it's a game of smoke and mirrors, central banks appear positioned to tighten if inflation takes off — and this would be a hit to asset prices. But if inflation fades (as they expect/hope) they can cool off on the tightening and then it's more or less "business as usual".
NeilR
pfm Member
Sell on the rumour, buy on the news. the markets are discounting the rate rises already.
andyoz
pfm Member
Another 5% drop in SMT today so I'll definitely be looking at it tomorrow. what do people think about Fundsmith FEET
ARK has near halved...someone will be licking their wounds on that one and media have egg on their face elevating Cathie to mythical status....she's just a gambler like the rest and why didn't they know about all the tech company 'insiders' selling their shares and front running that LOL.
https://www.ft.com/content/07d9b3c3-9c8a-4d0f-bf25-a9e419d5b949
Paypal been hammered as well this last year.
NeilR
pfm Member
I do buy into Cathie’s innovation story, it’s just that things got out of hand last year and too many people bought at the top. If you had invested at fund inception, you would be sitting on handsome gains. It’s actually quite a similar fund to BG’s EWI with a lot of commonly held stocks.
i might buy some if it falls much further. Only a small amount mind.