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Market timing is very rarely a winning strategy. If you are investing for the long term, don't worry about market fluctuations (remember that many stocks and fu
by kspaans 11y ago
Market timing is very rarely a winning strategy. If you are investing for the long term, don't worry about market fluctuations (remember that many stocks and funds will still pay you a dividend!) . If you don't like seeing a big dip in your net worth, spread your buying out over many months to dollar-cost-average it.
- Havoc 11y ago>Market timing is very rarely a winning strategy. Not really trying time time it per se, but this just feels like a particularly bad time to move a lump sum into stocks. Quite a few big names seem to think a crash is due soon: http://thesovereigninvestor.com/exclusives/80-stock-market-crash-to-strike-in-2016/ http://thesovereigninvestor.com/exclusives/80-stock-market-c... I can dollar cost average it I guess...but would prefer if the market just gets it over with and crashes.
- kspaans 11y agoIf you really think that, then you are missing out by not investing in a short strategy! :P Or, more seriously, remember to consider the opportunity costs! VTI, for example, has a yield of about 2%. Short term bond index funds could be better or worse than that.
- Havoc 11y ago>remember to consider the opportunity costs Problem is the size of the expected drop. If it does drop then I'd imagine a good 30-50% much like 2008. So quite aware that I'd be losing out on gains for a while. Its all guesswork though - the "right" move requires timing the market as you say. My gut feeling tells me its dicey though so I'm leaning towards losing out on gains for a while.