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The strong market has challenged value investors who want to buy at lower prices, but there are signs 2020 will continue a 'sweet spot' of profit growth, low inflation and central bank liquidity support.
A shock to a portfolio at the wrong time can compromise a retirement plan where cash must be withdrawn each year. There are funds which attempt to trade some of the upside to reduce the downside.
Markets are overlooking the obvious risks as traders pass the parcel to the next buyer. Even central bankers believe: “There is something vaguely troubling when the unthinkable becomes routine.”
Let's face it. Prices for many listed and unlisted companies have reached insane levels. Many of Australia's most reputable and successful fund managers are bewildered by the current market, and something's got to give.
Uber is the largest loss-making startup in history, and while investors will climb aboard the IPO and return money to early investors, the stockmarket will eventually realise there is no identifiable path to Uber profitability.
The biggest concern that many analysts ignore is that, after house prices begin falling, the savings ratio climbs, reflecting a lack of consumer confidence, leading to a rapid slowdown in the economy.