Bubble warning: Five indicators to watch out for
11 Aug 16
As the old strategy of “sell in May” has proved a failure thus far in 2016, Russ Mould, investment director at AJ Bell, looks at five indicators investors can use to judge whether there are further gains to be made or whether markets are entering bubble territory.
1. The transportation indices
“The old theory goes that if the transports are not performing, the industrials can’t either, as if nothing is being shipped, nothing is being sold. The good news is the FTSE All-Share Transportation index is marching higher and once more outpacing the broader FTSE All-Share,” he said.
Tags: Investment Strategy
