Tag: 贵族宝贝YSY

Market bubble: I would not have this FTSE 100 share in my ISA today!

first_img Stock-market history shows that that buying assets at very high prices leads to considerably lower future returns. Or to quote fund manager Jeremy Grantham, “A higher-priced asset will always produce a lower return than a lower-priced asset.” That’s why I’m a value investor, always looking to buy into quality companies at reasonable share prices. It’s also why I’m very worried about several market bubbles that blew much bigger in 2020/21.Market bubbles: the FTSE 100 isn’t immuneOne of the biggest market bubbles blowing up right now is in US tech stocks. Some of these mega-businesses are world leaders in their field and probably fairly priced for their future growth. But other ‘wonder stocks’ today enjoy what I would describe as insanely generous ratings. For me, far too many of these bubble stocks are priced for perfection — and beyond.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…However, even boring old UK shares are not immune from market bubbles, again concentrated in the tech sector. While tech stocks account for about a fifth of the US S&P 500 index, they make up only 1% of the UK’s FTSE 100. Hence, any tech-related UK shares enjoy premium ratings — and this usually makes them far too rich for my blood. Here’s one FTSE 100 bubble stock that I certainly wouldn’t add to my ISA at current price levels.This trust has thrashed the marketScottish Mortgage Investment Trust (LSE: SMT) is far and away one of the UK’s best-performing investment trusts. Here’s how the trust’s shares have delivered over various periods: one year +108%, three years +147.2%, five years +314.4%, 10 years +832%. These outstanding results make SMT one of the UK’s best collective investments of the past decade by miles. However, for me, the trust has itself become a market bubble because of the number of ultra-frothy stocks lurking within it.For the record, SMT is heavily exposed to the tech market bubble, notably in the US and China. Indeed, nine of its 10 biggest holdings are tech stocks. These include Tesla, NIO and Delivery Hero, all three of which I consider to be highly inflated bubble shares. What’s more, almost an eighth (12.3%) of the trust is invested in Elon Musk’s carmaker, which I believe to be the biggest bubble stock in modern history.This FTSE 100 share is in bubble territorySMT is run by two excellent fund managers, James Anderson (manager/joint manager since 2000) and Tom Slater (joint manager since 2015). Anderson and Slater should be congratulated for their ‘shoot out the lights’ performance over the past 10 years. As stock-pickers, they put their faith in high-growth businesses and disruptive companies whose share prices have thrashed the wider market.With SMT’s share price now caught up in the latest market bubble, I expect it to be a poor performer in the coming years. After all, this is exactly what tends to happen: more often than not, yesterday’s stars become tomorrow’s dogs. Specifically, this happened in spades to the best-performing tech funds when the dotcom bubble burst in March 2000. And financial history — plus my witnessing the past four market crashes — tells me that it’s set to happen again! Simply click below to discover how you can take advantage of this. “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Our 6 ‘Best Buys Now’ Shares I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Cliffdarcy has no position in any of the shares mentioned. The Motley Fool UK owns shares of and has recommended Tesla. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.center_img Image source: Getty Images. Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. Cliff D’Arcy | Friday, 15th January, 2021 | More on: SMT Enter Your Email Address Market bubble: I would not have this FTSE 100 share in my ISA today! See all posts by Cliff D’Arcylast_img read more