Main site > MoneySavingExpert.com Forums > Essential Money > Savings & Investments > Is it right to Invest in Stock Market Before the ... (Page 1)

IMPORTANT! This is MoneySavingExpert's open forum - anyone can post

Please exercise caution & report any spam, illegal, offensive, racist, libellous post to forumteam@moneysavingexpert.com

  • Be nice to all MoneySavers
  • All the best tips go in the MoneySavingExpert weekly email

    Plus all the new guides, deals & loopholes

  • No spam/referral links
or Login with Facebook
Is it right to Invest in Stock Market Before the Year Ends?
Reply
Views: 793
Thread Tools Search this Thread Display Modes
# 1
dude0nvacation
Old 14-11-2012, 12:50 PM
MoneySaving Convert
 
Join Date: Aug 2012
Posts: 36
Default Is it right to Invest in Stock Market Before the Year Ends?

Hi Everyone,

I am wondering if investing stocks is a great idea before the year ends... I heard that stocks are booming - so is this the best time to invest or should I wait for it to drop?

Any advice on this is appreciated - I am new to this thing and need to think a million times for this.

Cheers!
dude0nvacation is offline
Reply With Quote Report Post
# 2
jimjames
Old 14-11-2012, 1:00 PM
Fantastically Fervent MoneySaving Super Fan
 
Join Date: Feb 2008
Location: England, UK
Posts: 5,729
Default

Not sure where you heard that stocks are booming and that it is a good time to invest. If you are investing on the basis of that kind of advice then you could be setting yourself up for losing money.

Before you invest any money you should make sure you fully understand what you are doing, the risks and what you are invested in.

If you don't have an ISA then that should be your first port of call to make sure the investments are tax free.
Remember the saying: if it looks too good to be true it almost certainly is.
jimjames is offline
Reply With Quote Report Post
# 3
Linton
Old 14-11-2012, 1:17 PM
Fantastically Fervent MoneySaving Super Fan
 
Join Date: Aug 2008
Posts: 4,414
Default

Shares arent booming at the moment, they have been pretty static for a couple of years. If they were, then it would be better if you had invested earlier.

As to whether it is a good time to invest, I believe that if you are planning to drip feed rather than putting in a large lump sum any time is a good time to invest.

You do need to first ensure that you have a significant safety net, say 6 months living expenses, in cash accounts to cover emergencies and to ensure that you dont need to sell your investments quickly should you lose your job. Investing is for the long term.
Linton is online now
Reply With Quote Report Post
The Following User Says Thank You to Linton For This Useful Post: Show me >>
# 4
dunstonh
Old 14-11-2012, 1:22 PM
Mega Magnificent Maxi-Meticulous Uber-MoneySaving Magnate
 
Join Date: Apr 2004
Location: Norfolk
Posts: 74,197
Default

Quote:
I heard that stocks are booming
Markets are doing what they always do. Going up and down within normal levels of volatility. No boom.

Timing has little to do with long term returns. Short term could be measured but unless you have a crystal ball you will never know when it is best. Generally though, it is often better to invest when the markets have or are falling. Not after they have boomed (a real boom that is).
I am a Financial Adviser. Comments are for discussion purposes only. They are not financial advice. Different people have different needs and what is right for one person may not be for another. If you feel an area discussed may be relevant to you, then please seek advice from a Financial Adviser local to you.
dunstonh is offline
Reply With Quote Report Post
# 5
Glen Clark
Old 14-11-2012, 2:14 PM
Fantastically Fervent MoneySaving Super Fan
 
Join Date: Oct 2010
Posts: 2,130
Exclamation

Quote:
Originally Posted by jimjames View Post
Not sure where you heard that stocks are booming and that it is a good time to invest.

That is not what the OP said.
Glen Clark is offline
Reply With Quote Report Post
# 6
Strumminalong
Old 14-11-2012, 5:26 PM
MoneySaving Convert
 
Join Date: Nov 2012
Posts: 19
Default

As a new inexperienced investor stocks and shares should be really be viewed as a long term investment and trying to time the market is virtually impossible.

However, you could possibly consider the likelihood of another traditional annual santa rally vs the chances of the US fiscal cliff kicking in on Jan 1.

Annuity loan matures - Collect 100.
Strumminalong is offline
Reply With Quote Report Post
The Following User Says Thank You to Strumminalong For This Useful Post: Show me >>
# 7
buffman
Old 14-11-2012, 6:30 PM
MoneySaving Stalwart
 
Join Date: Jun 2011
Posts: 289
Default

There is a tendancy for stocks to rise from the beginning of December until the end of January. Happens most years but not all!
buffman is offline
Reply With Quote Report Post
# 8
sabretoothtigger
Old 14-11-2012, 9:31 PM
Fantastically Fervent MoneySaving Super Fan
 
Join Date: Feb 2008
Location: Listen very carefully, I shall say 'zis only once
Posts: 9,852
Send a message via ICQ to sabretoothtigger Send a message via AIM to sabretoothtigger Send a message via Yahoo to sabretoothtigger
Default

Well last year was the opposite. There is a bermuda triangle effect where large amounts of traders just disappear over the holiday and shares lose their compass for the duration.
Most of the worlds money is in bonds still

Its not exact but at some point the selling and lack of interest becomes irrational, after xmas we had a very strong few weeks of rising before we resumed the now usual chaos.

This year we could have a 'eerie' lull and rising prices over holidays, depends how bad this present market sell off gets before Dec

To enter the market on this basis is pretty foolish as a new investor. Whats more usual is to say I want to invest before april, this is because of taxes. In USA I think have to file or total up their accounts before dec 31st so perhaps some logic is there but usually its quiet more then anything.

Xmas 2010 was Dubai crash before then it was positive over xmas. 2009 I forget but 08 was positive and was awful after.

I suggest invest monthly for at least a year, theres not really a rush. This is not a bull market, price the FTSE vs petrol or food or any major bill outside housing and it should show up this is not a real rising market
Quote:
Originally Posted by Leslie Poles Hartley
The past is a foreign country: they do things differently there
Quote:
Tokyo residential prices have gone from 4x London in 1990 to London in 2014

Last edited by sabretoothtigger; 14-11-2012 at 9:34 PM.
sabretoothtigger is offline
Reply With Quote Report Post
# 9
rockitup
Old 14-11-2012, 10:45 PM
MoneySaving Stalwart
 
Join Date: Jul 2010
Posts: 652
Default

If you are so new to investing, why not try some regular monthly investments into a low cost tracker fund or Generalist Investment Trust. As Strumminalong pointed out timing the market ain't easy (although I do have a go sometimes...)

When you get a fair size portfolio up and running then you could risk a portion on seasonal investing on the FTSE/DOW/S & P or similar.

There is a very useful book to read about seasonal investing "Stock Trader's Almanac" by Jeff Hirsch. If you have iPad or iPhone they also have an app on the App Store. Read before you try and no harm having a demo account to paper trade it before you decide whether to risk any money on it. The book and the app have yearly editions so the 2013 is the new release for the book. 2013 App probably comes out in January
rockitup is offline
Reply With Quote Report Post
Reply

Bookmarks
 
 




Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

 Forum Jump  

Contact Us - MoneySavingExpert.com - Archive - Privacy Statement - Top

Powered by vBulletin® Copyright ©2000 - 2014, Jelsoft Enterprises Ltd.

All times are GMT +1. The time now is 4:24 PM.

 Forum Jump  

Free MoneySaving Email

Top deals: Week of 27 August 2014

Get all this & more in MoneySavingExpert's weekly email full of guides, vouchers and Deals

GET THIS FREE WEEKLY EMAIL Full of deals, guides & it's spam free

Latest News & Blogs

Martin's Twitter Feed

profile

Cheap Travel Money

Find the best online rate for holiday cash with MSE's TravelMoneyMax.

Find the best online rate for your holiday cash with MoneySavingExpert's TravelMoneyMax.

TuneChecker Top Albums

  • KATE BUSHTHE WHOLE STORY
  • ARIANA GRANDEMY EVERYTHING (DELUXE)
  • VARIOUS ARTISTSNOW THAT'S WHAT I CALL MUSIC! 88

MSE's Twitter Feed

profile
Always remember anyone can post on the MSE forums, so it can be very different from our opinion.
We use Skimlinks and other affiliated links in some of our boards, for some of our users.