When bubbles matter and when they don't

FEATURE

clock • 4 min read

Trying to predict when an investment bubble will burst is a fool's game and it is more important not to jump too soon, says Geoff Legg, investment manager and director at Kennox Asset Management.

For the better part of five years, the market has been characterised by rising prices, rising optimism, complacency and general bullishness, with brief downward movements swiftly corrected by external stimuli in the form of quantitative easing. Are we experiencing a bubble?  For value investors, the question produces ambivalence. In some ways the answer does not matter and in others, it really does. It does not matter because value investing focuses on individual opportunities, not on overall movements of the market. However, on the other hand, it matters very much because opportuniti...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Economics

Eurozone inflation climbs above ECB's target to 2.3% in November

Eurozone inflation climbs above ECB's target to 2.3% in November

Analysts urge further rate cuts

Linus Uhlig
clock 29 November 2024 • 1 min read
UK public sector borrowing jumps £1.6bn as Treasury reiterates repair pledge

UK public sector borrowing jumps £1.6bn as Treasury reiterates repair pledge

October's public sector finance stats

Eve Maddock-Jones
clock 21 November 2024 • 2 min read
Hike in energy prices pushes inflation above BoE target at 2.3% in October

Hike in energy prices pushes inflation above BoE target at 2.3% in October

Slim chances of rate cut before year-end

Cristian Angeloni
clock 20 November 2024 • 2 min read
Trustpilot