Hey guys. A question if anyone has an opinion on how UK stocks would fare in an S&P500 pullback.
Ive got a decent mix of LSE AIM, FTSE 100, FTSE 250 and USA stocks in my ISA. It skews to the UK side but Im wondering if that would help in a USA crash. Im having trouble finding any data on pullbacks in overpriced USA markets when the UK market is undervalued and underperforming.
Do you guys think an S&P500 crash would be a domino that would affect all markets? Or mostly isolated to overpriced stocks with stretched P/E ratios?
Ive got some stocks like Tesla which I assume would be slammed in a crash, but probably would most likely also recover well, so Im not too worried. But if being mostly in UK stocks would shield from the affects of a crash, itd be better than just holding cash.
This is all assuming we are headed for a crash, we may not be. I think Id like to take a defensive position in Feb and see how that goes for a couple of months.