Many people are reprising Alan Greenspan’s comments about ‘irrational exuberance’ from the mid-1990s but others point out that the sharp rise in corporate earnings over the last 18 months justifies the surge.
Richard Clarida, the Fed’s number two, warned this week that the pace at which bond purchases are due to be tapered down this year and next will be on the agenda at next month’s rate-setting meeting.
If you wanted evidence that interest rates will stay lower for longer then look no further than British lender Kensington Mortgages, which is set to launch a new 40 year fixed-price home loan, the first of its kind in the UK.
Fear of missing out, aka FOMO, may be pushing the prices of many investments higher – bank stocks are up 30% since the start of the year on interest rate hopes and booming M&A activity – but the gains are not across the board.
If you are unsure about the suitability of an investment you should speak to a Fidelity adviser or an authorised financial adviser of your choice.
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