EDITOR'S LETTERMerryn Somerset Webb
The world’s cheapest stocks
The good news doesn’t seem to stop for investors. US house prices are rising again. Japan’s stock market just hit a five-year high. The Dow Jones is at an all-time high (15,000!). So is Germany’s Dax. The UK market is doing pretty well too.
We’re rather pleased about this. No one could exactly accuse us of being perma-bulls, but we have long been badgering readers to buy Japan; Germany was the market most of our panel tipped at last year’s MoneyWeek Conference (I look forward to seeing lots of you at our next one on the 17th); we started hankering after houses in Florida a year or so ago (though I’m sad to say none of us found time to buy one); and, while I missed the 2009 bottom, we’ve been investing in Britain and America via the big blue-chips for some time.
The only thing we’re really losing on at the moment is gold. But that’s fine too: we’ve long said we hold our gold as insurance. We want it to go up in the bad times, but we aren’t much bothered what it does when everything else is rising. But all these new highs bring out the bears in MoneyWeek staff.
We know – as do you – that none of these gains (apart, perhaps, from those in Japan) are based on fundamental strengths or cheap valuations. They’re based on cheap money and quantitative easing.
• Read the full editor’s letter here: The world’s cheapest stocks.