Red flags are everywhere, making us anxious about this market
According to the Bank of International Settlements, there are now more margin loans supporting buying in the US stock market than during the tech boom of 1999/2000. And those loans are chasing an ever-narrowing band of tech stocks on the back of a ‘fear of missing out’. This is just one of the many red flags making us nervous right now.
Roger Montgomery is the Founder and Chairman of Montgomery Investment Management. Roger has over three decades of experience in funds management and related activities, including equities analysis, equity and derivatives strategy, trading and stockbroking. Prior to establishing Montgomery, Roger held positions at Ord Minnett Jardine Fleming, BT (Australia) Limited and Merrill Lynch.
This post was contributed by a representative of Montgomery Investment Management Pty Limited (AFSL No. 354564). The principal purpose of this post is to provide factual information and not provide financial product advice. Additionally, the information provided is not intended to provide any recommendation or opinion about any financial product. Any commentary and statements of opinion however may contain general advice only that is prepared without taking into account your personal objectives, financial circumstances or needs. Because of this, before acting on any of the information provided, you should always consider its appropriateness in light of your personal objectives, financial circumstances and needs and should consider seeking independent advice from a financial advisor if necessary before making any decisions. This post specifically excludes personal advice.
Mark
:
Great article Roger. It requires a high amout of confidence and patience to go against the herd.
andrew ronan
:
And red faces will follow red flags when it all blows up and the misery of reality hits society as in Venezuela. Is it not really about time some of these socialist Keynesians stood up and put their hand up and said sorry for destroying our financial system and admitting they actually had no clue what they were doing when they thought they could print their way to prosperity, all they have done is made the rich richer and the other %90 poorer. But they Can’t stop because the tiger they have by the tail will eat them at some point and hopefully soon.
karl
:
Thanks Roger pretty scary given the numerous parallels with the Great Depression/WWII era.