The two signs warning you to sell UK and US stocks

Investors in British and American stocks are in jubilant mood. But beware joining the party, says Tim Bennett. Trouble may be lurking around the corner.

For the first time in a while, checking the value of my FTSE 100 tracker fund has not been a depressing experience: the index is now sitting around the 6,200 mark, a full 1,000 points, or about 20%, above its 52-week low. Meanwhile, in America, the S&P 500 is not far off its all-time high.

Despite the wobbly economic backdrop, investors seem determined to think positive about the future. But it's often just when investors are cheeriest that you should be most nervous. Here are two warning signs that we may be heading for a correction.

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Tim graduated with a history degree from Cambridge University in 1989 and, after a year of travelling, joined the financial services firm Ernst and Young in 1990, qualifying as a chartered accountant in 1994.

He then moved into financial markets training, designing and running a variety of courses at graduate level and beyond for a range of organisations including the Securities and Investment Institute and UBS. He joined MoneyWeek in 2007.