Wednesday 7 February 2018
Market fun again
It is so predictable.
Every year fund managers allocate their last monies to simple trackers at the year end. The markets rise into the end of December to make the annual figures look a bit better.
Then they go on holiday.
In January, back they come and mess about for a week or two, sometimes the market goes up a little more.
Then bang come middle of Jan or Early Feb they realise they need to do their number at the year end and there are few good opportunities with the market so high. So they reduce their general funds money and the markets wobble.
Sometimes badly, sometimes not so much. The media panic about a crash and how Brexit/Bitcoin or some other B is destroying the world which is about to end.
Then the re-allocations are made into more favourably priced stuff and the world goes on.
Every year. It's a funny old world sometimes