The FTSE 100 hit a new record level at the start of 2018, a phenomenon which has been mirrored in stock markets over the pond in the US, and indeed across the globe. The stock market’s strong run has prompted fears that it may be overheating and consequently could be heading for a fall. While markets, of course, do move in cycles, too many people are taking it for granted that the market is heading for an inevitable correction.

Indeed, these same voices have been prevalent throughout the bull run the stock market has been on. In January 2016, RBS urged its institutional clients to ‘sell everything except high quality bonds’. £10,000 invested in the UK stock market on the same day that advice was issued would now be worth £13,830, just two years later.

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