Last month, the index of leading British shares hit a new all-time high. In the weeks since then, however, it’s gone into reverse. The index is around 3% lower than the high it hit last month.
Now, 3% might not sound like much. But over the past five years, the FTSE 100 has grown by only 11%. Within that context, a 3% fall in a matter of weeks is actually quite large.
What’s going on – and how can I best position my portfolio in response? Long, lazy summer I think a lot of this might simply be a manifestation of the old stock market adage “ While that may sound simplistic, springtime often sees a cluster of full-year results. This year, some of those came in strongly and pushed up share prices. But as the City gets quieter and thoughts drift towards a relaxing summer, activity and prices in the stock market can also lose some momentum.
Valuations continue to look cheap Rather than trying to time the market, the approach I take is simply to look for value at all times. While the FTSE 100 index seems to be cooling its feet after hitting a new record, that does not tell me anything about individual shares within it. Over the past year, for example, has more than tripled.
By contrast, raincoat maker ( ) has experienced its own patch of stormy weather and lost over half its value. I am not , but rather I have . So, whether or not the FTSE 100 is losing momentum at the moment, I continue to look out for what I think could be bargains.
Hunting for shares to buy Could Burberr.
