Apparently the investor herd has grown wary of its own growing stock market confidence. That’s despite the $£multi-trillion cash mountain that remains on deposit and earning nothing in the midst of this lowest of all possible interest rate environments. And while market sentiment might be turning a bit, there’s little by way of evidence to suggest that big cash pile will be doing the same anytime soon.
I think sometimes we don’t give enough spotlight to the problems that all these incorrect market diagnoses cause investors; steering the herd in the wrong direction has become big business, and far easier to execute with the fundamental shift in communications brought about by technology over the last few decades.
While driving in to the office in Linlithgow this morning, I managed to catch about 10 minutes of a phone-in about pensions and investments on one of the Blind and Blinkered Corporation’s (BBC) radio channels. What a palava!
“If you don’t know that you don’t know what you don’t know, how do you know what you don’t know?”