Noth­ing’s set in stone

Finweek English Edition - - MARKETPLACE SIMON SAYS -

With the cur­rent list­ing boom we’re see­ing many com­ments that this is a clas­sic mar­ket-top in­di­ca­tion and that is true. Bear mar­kets are pretty much al­ways pre­ceded by a glut of new list­ings, but what’s im­por­tant is to un­der­stand the time­line. This list­ing boom could con­tinue for an­other year or more, or we could be mov­ing into bear ter­ri­tory as you read this. This is not a lin­ear process – a list­ing boom may not im­me­di­ately be fol­lowed by a bear mar­ket. The list­ing boom is just an­other sig­nal that mar­kets are gen­er­ally ex­pen­sive. As al­ways, my ad­vice re­mains to hold onto qual­ity stocks and use th­ese warn­ing sig­nals to exit the lower qual­ity hold­ings you may have.

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