Is it now good timing to invest? Or should I wait?

gemma.zhang

It has been really volatile lately on the market. We r about to invest 90k combined cash and SS ISA into funds with 80% equity.

Is it a good timing, or should I wait a bit when the turmoil is finished.
Again, I know it's a guess work, just curious on others' opinion :j


Thanks!

bigadaj

Well you're buying the same assets some 10-15% cheaper than you would have been a couple of months ago so it's relatively good value.

With relatively large sums I'd be tempted to provide some form of drip feeding, pound cost averaging isn't guaranteed to work but it provides some protection into buying at one price which could be at a relative high point.

Al.

Do you need to take that level of risk? If you're that punchy, it doesn't matter when you invest, you should be prepared to accept turbulence and volatility of some sort anyway. Having said that, if you're about to do it anyway, it's as good a time as any.

But ask yourself, with that level of exposure to turbulence, how would you now be feeling if you had invested 3 months ago, and you're looking at a dip in value to somewhere in the region of £84k? And don't forget, you have the fund to grow by more than it loses just to get back to where you've started from too. How does that time factor sit with your plans?

Let the feeling in your gut right now guide you as much as the possibility of riding an exciting roller coaster. You might just have a tiger by the tail.

http://www.trustnet.com/Factsheets/Factsheet.aspx?fundCode=ACFDT

Pincher

The boring advice is to have 60% in cash deposits, 30% medium risk, and 10% is gambling money.

So, you have £9,000 to blow how you want.

I would just buy some HSBC shares inside a S&S ISA, and cross your fingers. I have put my money where my mouth is.

gemma.zhang

Thanks everyone!

I am tempted to feed drip, maybe in next 3 months gradually.
We r ok with the timing as won't need the money for a while, but will be gutted if it drops by 10% next day!

atush

how long is a while? Has to be 5 years or more?

In your case, i'd be drip feeding in. One, to help you not panic and two- in case of further falls.

dunstonh

gemma.zhang wrote: »

It has been really volatile lately on the market. We r about to invest 90k combined cash and SS ISA into funds with 80% equity.

Is it a good timing, or should I wait a bit when the turmoil is finished.
Again, I know it's a guess work, just curious on others' opinion :j


Thanks!

80% equity is higher risk. Yet your comments suggest you are not suitable for that level of risk.

There is always volatility. Sometimes more than others but this is something you need to get used to. If you wait for a calm period then you wilil be waiting forever.

We r ok with the timing as won't need the money for a while, but will be gutted if it drops by 10% next day!

What about dropping another 20%? 80% equity has a 30-35% loss potential.

Thrugelmir

gemma.zhang wrote: »

It has been really volatile lately on the market.

Normality is returning.

What matters is the time in the market not timing of the market.

Drip feed money in over an extended period into a diversified range of investments.

Glen_Clark

If you put 70% into equities today you are only in the same position as those who have drip fed 70% in. Except perhaps for the psychological factor. If prices drop 10% the day after you put it all in, you might feel worse than those of us who have held 70% equities for many years through all the ups and downs. But we will all be suffering the same loss.

stringer_bell

I hate drops, I know your supposed to buy more when it drops.. but.. I want to topup ted baker, rightmove and sports direct.. and I only have 7.5k, so 2.5k in each. I would not be able to drip feed

Thrugelmir

stringer_bell wrote: »

I hate drops, I know your supposed to buy more when it drops.. but.. I want to topup ted baker, rightmove and sports direct.. and I only have 7.5k, so 2.5k in each. I would not be able to drip feed

That's a very narrow range of investments. Personally I would hold a broader Investment Trust with that amount invested. Using a savings scheme dividend reinvestment would be cheap and easy.