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Bump in the road

Stocks and Shares ISA , Choosing funds for ISA's, risk factors for funds etc
Investment strategy discussions not dealt with elsewhere.
OhNoNotimAgain
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Bump in the road

#251440

Postby OhNoNotimAgain » September 12th, 2019, 4:55 pm

https://www.ft.com/content/f638a3ac-d4d ... 7ebd53ab77




The FTSE All-World equity index has rallied almost 3 per cent already this month, clawing back some of August’s losses. However, many highly popular stocks suffered a sudden and brutal sell-off this week, a reversal that analysts have already dubbed the “momentum crash”.

BusyBumbleBee
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Re: Bump in the road

#251452

Postby BusyBumbleBee » September 12th, 2019, 5:46 pm

Is this an Investment Strategy? Akin with derailed?

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Re: Bump in the road

#252116

Postby PrefInvestor » September 16th, 2019, 8:39 am

OhNoNotimAgain wrote:https://www.ft.com/content/f638a3ac-d4d9-11e9-8367-807ebd53ab77

The FTSE All-World equity index has rallied almost 3 per cent already this month, clawing back some of August’s losses. However, many highly popular stocks suffered a sudden and brutal sell-off this week, a reversal that analysts have already dubbed the “momentum crash”.


Well I did manage to read this article but I suspect many could not as some form of FT subscription is required.

Not surprised to see that the article was referring to US stocks in the main, and anyone investing in those has got to expect extreme volatility IMV. Some UK stocks, especially financials, had a stellar week after the pullback from a no deal brexit and the recovery in the GBP and I suspect many HYP investors (not me I should add) were very happy last week. I suspect that those US big names will likely make progress again soon enough, especially if some sort of China trade deal gets done. Good luck to anyone investing in that space, not for me.

Pref

OhNoNotimAgain
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Re: Bump in the road

#252118

Postby OhNoNotimAgain » September 16th, 2019, 8:47 am

PrefInvestor wrote:
OhNoNotimAgain wrote:https://www.ft.com/content/f638a3ac-d4d9-11e9-8367-807ebd53ab77

The FTSE All-World equity index has rallied almost 3 per cent already this month, clawing back some of August’s losses. However, many highly popular stocks suffered a sudden and brutal sell-off this week, a reversal that analysts have already dubbed the “momentum crash”.


Well I did manage to read this article but I suspect many could not as some form of FT subscription is required.

Not surprised to see that the article was referring to US stocks in the main, and anyone investing in those has got to expect extreme volatility IMV. Some UK stocks, especially financials, had a stellar week after the pullback from a no deal brexit and the recovery in the GBP and I suspect many HYP investors (not me I should add) were very happy last week. I suspect that those US big names will likely make progress again soon enough, especially if some sort of China trade deal gets done. Good luck to anyone investing in that space, not for me.

Pref


It would be naive to think that any wobbles in the US market would not be felt over here.

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Re: Bump in the road

#252174

Postby PrefInvestor » September 16th, 2019, 11:30 am

OhNoNotimAgain wrote:It would be naive to think that any wobbles in the US market would not be felt over here.


Well I would agree that in general terms that the UK & European indices do tend to follow any significant trend taken by US markets - but not always. And in respect of specific sectors and stocks in practice the differences can be quite marked and GBP/USD movements can often make a difference.

The following chart shows a comparison of the S&P 500 vs the FTSE 100

Image

This chart would seem to indicate that neither market is particularly depressed, though of course performance of specific stocks/funds might well be significantly different. The following article would seem to indicate that there has been a significant move out of growth and into value stocks in the US:-

https://www.barrons.com/articles/moment ... 1568125963

Clearly if you are an investor in the big US growth names (especially tech) then you might be feeling the effect of this. I see no reason why that guarantees any specific response in UK / European markets though, unless it starts to affect the broader indices.

Pref


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