Invest Now or Hang Fire

MPN

I thought the FTSE (not sure about global markets) dropped considerably last February?

enthusiasticsaver

MPN wrote: »

Enthusiastic saver. I did say I moved my UK active funds into cash and not the global ones!

I am quite comfortable in the markets and I'm happy with my returns but I just had a big worry about Brexit especially for my UK funds and that's why I moved into cash whilst I had a healthy profit. Maybe the markets will stay high but who knows they could drop like a stone!

So are you moving all your USA stocks now due to Trump getting in? What about the European elections next year - will you be moving European stocks into cash as well? My point is if you are going to move stocks every time you (wrongly or rightly) predict there will be a fall due to something going on in that particular geographical area or sector come to that then you may as well not be invested at all.

My portfolio rose after Brexit due to currency exchange and now has fallen again slightly due to sterling rising slightly after US election. I am not going to worry about it as I don't need the money now.

JohnRo

MPN wrote: »

I thought the FTSE (not sure about global markets) dropped considerably last February?

It started at the end of last year and went into January and February. The UK market didn't really recover until the shenanigans in June flushed the GBP down the pan.

Globally and in the US especially, trying to capitalise on any of those dips would have taken some very impressive timing since each time their markets fell sharply they also recovered quickly and then some.

That was a hangover from the October 2015 blood bath and all the distress and panic about China which never really went away but has since been overshadowed somewhat. So a big chance went begging then to grab some really good bargains at that point but it's only easy to say that after the fact.

There will always be opportunities, deciding when the right time has finally arrived though is very tough and acting on it even tougher, especially when it feels like everyone is getting out and taking shelter before the sky crashes down.

If your investment plan is a long term proposition then it's far better to just stick to the plan and be in there all the time so that you're positioned to capitalise on any rapid gains at all times. Simply enjoy the dividends/reinvestment/compounding in the mean time and learn to ignore or at least be indifferent to the inevitable dips.

Alice_Holt

http://thereformedbroker.com/2016/11/07/how-to-become-a-2-investor/

"How to lose the benefits of a diversified portfolio, with dividends reinvested and a rebalance each year? Because they’re more cautious than they need to be at the wrong time, and then grow more certain only after the market does.
Sit with a near-nothing yielding cash awaiting the next buying opportunity. And then the markets will fall someday – maybe even soon – and he won’t be able to buy then either. Because once the market drops 5 or 10 percent, it always looks and feels like it’s about to go much lower.....".

Tmon

Why not try and add some trackers to your portfolio, in the long run, if you look at the trends over decades instead of annually, the market ends up.