...BUT BEWARE THE U.S. ‘MANIA’

IT IS no coincidence that the fund picks of our investment experts are largely devoid of exposure to the United States.

As FundExpert’s Brian Dennehy says, the buoyant US stock market and the behaviour of US investors in particular across a range of assets such as cryptocurrencies, screams ‘maniacal’.

He believes the end of the ‘ mania’ when it comes will be ugly with falls in asset prices – US equities and cryptocurrencies – in excess of 50 per cent and rapid falls will be commonplace. But, he adds, there is no natural end to a mania. He adds: ‘I hope for a Biden honeymoon to allow the investment potential locked up in UK and emerging markets to blossom. But hope is not an investment strategy. That means investors must take care in where they invest and have a ‘stop-loss’ in place – selling on market falls of 10 per cent or more.’

In other words, diversify your investments – geographically and across funds – and invest regularly rather than on an ad hoc basis.