US stocks are big and liquid with companies such as Exxon Mobil, Johnston & Johnston, General Electric or United Technologies Corp always tempting to buy. However their very admirable qualities – market size/dominance, reliable earnings, dividends and robust balance sheets – make them popular and staple stocks of many, many US and overseas investors. I myself hold General Electric, and although I bought it too high it has still paid its dividends – even in the bad times of 2008-2009. The problem for me is that US stocks always seem a bit too pricey; by some estimates 40% overvalued but that’s just someone’s opinion. It is P/E ratios of 18 plus or more that makes me think twice before buying and encourages me to look elsewhere. UK stocks do appear cheaper, but I remain very cautious as after the market having a good Summer run and now extending into Autumn it is vulnerable to any bad news not priced into the market – and there’s plenty of that about. I’ve bought small starter stakes in a couple of UK companies which I have been watching, and aim to add more later if it falls or just catch a stock on the rise – albeit with a smaller stake as initially hoped. Trying to avoid buyer’s regret in volatile markets is a pointless task so I look forward to either stocks going up or down as I still maintain healthy cash positions.

Good luck

LDC