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Re: With the Dow 1300 points down, is it a good time to get into the market?

Not all mutual fund OEFs are managed and not all ETFs are passive. Investing is all about time horizon and how your portfolio AA is handled.


@Mortmain wrote:

You are going to get conflicting views to your question because it involves the issue of timing. Timing is notoriously difficult to do because of what is termed the 'random walk', which says a stock's price will move in a random fashion so is not determined by the previous days moves. Prices could just as easily go down as up. However, there are investors who believe searching for shares that are priced at or below their intrinsic value is the only way to go as it hedges against volatility and gives you better long term growth prospects. Warren Buffet is one of those investors. There is no doubt that on a fundamental level share prices generally remain over-bought (expensive). By entering the market at elevated levels and during a very long bull cycle it seems counter-intuitive to invest. I personally would not invest in this market. However, if you are going to invest now one suggestion might be to dollar-cost-average into it. By committing a fixed amount, say $1,000 a month, into buying the 'market' (well-diversified) such as an S&P 500 fund, you hedge your bets. You might like to consider a mutual fund (managed) over an ETF (passive) since volatility will continue throughout this year. This method of investing over the long haul will mean you smooth out the bumps, both up and down, but win out eventually.


 

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Frequent Contributor

Re: With the Dow 1300 points down, is it a good time to get into the market?

I don't agree at all with the blanket statement "The time to invest in the market is when you have funds available".

Most of us have funds available, but to just buy into any market makes no sense in my opinion. There was a train leaving just a few months ago that was heading to Dow 30K.  You remember where that train ended up? Yep, Dow 18,591.

Granted, there were any number of reasons why that little train may have been delayed(we all should know them), but those things were not taken into consideration at the time of departure. Are we in another situation currently where it might be wise to sit back and wait before continue to place all available funds into investments? Who knows! I'm inclined to listen to all sources of information and then decide for myself.

I have encouraged my sons and daughters to ignore the noise and dollar-cost average into their investments. But, when it comes to investors that have portfolios that will support their future needs they shouldn't be throwing caution to the wind by following blindly the suggestions of others.

Best to all

Out

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Re: With the Dow 1300 points down, is it a good time to get into the market?

Well said @outandabout 

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Frequent Contributor

Re: With the Dow 1300 points down, is it a good time to get into the market?

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Contributor ○○○

Re: With the Dow 1300 points down, is it a good time to get into the market?

+1

With a 10+ year time horizon the current market level is not too important IMHO  


@outandabout wrote:

I don't agree at all with the blanket statement "The time to invest in the market is when you have funds available".

Most of us have funds available, but to just buy into any market makes no sense in my opinion. There was a train leaving just a few months ago that was heading to Dow 30K.  You remember where that train ended up? Yep, Dow 18,591.

Granted, there were any number of reasons why that little train may have been delayed(we all should know them), but those things were not taken into consideration at the time of departure. Are we in another situation currently where it might be wise to sit back and wait before continue to place all available funds into investments? Who knows! I'm inclined to listen to all sources of information and then decide for myself.

I have encouraged my sons and daughters to ignore the noise and dollar-cost average into their investments. But, when it comes to investors that have portfolios that will support their future needs they shouldn't be throwing caution to the wind by following blindly the suggestions of others.

Best to all

Out


 

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Re: With the Dow 1300 points down, is it a good time to get into the market?


@Gary1952 wrote:

+1

With a 10+ year time horizon the current market level is not too important IMHO  


@outandabout wrote:

I don't agree at all with the blanket statement "The time to invest in the market is when you have funds available".

Most of us have funds available, but to just buy into any market makes no sense in my opinion. There was a train leaving just a few months ago that was heading to Dow 30K.  You remember where that train ended up? Yep, Dow 18,591.

Granted, there were any number of reasons why that little train may have been delayed(we all should know them), but those things were not taken into consideration at the time of departure. Are we in another situation currently where it might be wise to sit back and wait before continue to place all available funds into investments? Who knows! I'm inclined to listen to all sources of information and then decide for myself.

I have encouraged my sons and daughters to ignore the noise and dollar-cost average into their investments. But, when it comes to investors that have portfolios that will support their future needs they shouldn't be throwing caution to the wind by following blindly the suggestions of others.

Best to all

Out


 


Just a time to be careful and not careless with one's investments, Gary.

Take care.

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Explorer ○○○

Re: With the Dow 1300 points down, is it a good time to get into the market?

When committing to invest, I think beyond just today but also about how much I'll invest TOMORROW--and when I'll SELL (if ever).

I've got a fixed amount that goes into my brokerage account every month.  Yeah, I'll do some "timing" and I generally try to avoid buying an overpriced market, which in my opinion the last couple weeks have been.  I bought a little bit yesterday.

However, I know enough to know I can't predict the near term very well so at least I stay invested in case I'm wrong.  I KNOW that research shows lump sum is best, but if I get a big chunk I still go slow and periodic. This costs me sometimes but saves me other times, and is just psychologically (for me) more manageable.

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