Are the Markets Too High to Invest?

Sally57

Most of the geographical regions (Japan, Asia Pacific, EM & Europe) are very high at the moment so are these markets far too high to invest?

'Time in the Market is a regular comment but if you had cash to invest now don't you think it's worth holding back at current prices?'

chockydavid1983

For how long?

Voyager2002

"Very high"?

Look at measures like P/E and CAPE: value is there if you can take the trouble to find it.

BLB53

'Time in the Market is a regular comment but if you had cash to invest now don't you think it's worth holding back at current prices?'

Yes, I am holding off until there is a sell-off of ~10%. Also the drop in sterling v the USD is making global funds more expensive. I expect the pound to bounce back (or the dollar to fall) before I top up my Lifestrategy fund.

Just one person's two penn'orth of course.

smjxm09

That's a very good question. I guess the issue is that a stock market that is at record highs and a pound that is at 30 year lows the bubble will eventually burst.

Over 10 to 20 years shares seem to be the way to go but if you lose say 30% overnight will you be brave enough to ride out the storm?

Simon.Edmunds

BLB53 wrote: »

Yes, I am holding off until there is a sell-off of ~10%. Also the drop in sterling v the USD is making global funds more expensive. I expect the pound to bounce back (or the dollar to fall) before I top up my Lifestrategy fund.

Just one person's two penn'orth of course.

What if the market goes up 15% before it drops back 10%?

Buffet:

'Time in the market - not timing the market'

veryintrigued

Very few of those already invested will say yes as its in their interest for more people to invest.

**stands back and puts tin hat on**

Simon.Edmunds

smjxm09 wrote: »

That's a very good question. I guess the issue is that a stock market that is at record highs and a pound that is at 30 year lows the bubble will eventually burst.

Over 10 to 20 years shares seem to be the way to go but if you lose say 30% overnight will you be brave enough to ride out the storm?

When has the stock market lost 30% overnight? Never. It's an invalid point. Just go on to Morningstar and review the performance of the US stock market for last 30 years.

As long as your investment horizons are 5-50 years in length and you invest in passive trackers you simply cannot lose.

OldMusicGuy

You might want to have a read of this thread: https://forums.moneysavingexpert.com/discussion/5617940

It's a long discussion about the pros and cons of trying to "time" the market.

Bravepants

If you are uncomfortable popping in a lump sum, then drip feed. I have a DC AVC as part of my pension planning. I put in 15% of my gross monthly salary each month to save paying 40% tax. I've recently increased from 10%. I wouldn't be able to cash it out temporarily and then put it back in again as it's a pension.

I also have an ISA and I am happy to drip feed that too. I'm not worried as it's money I won't need for 5 to 10 years. If the market falls by 30% I will still drip feed. The market is unpredictable no matter how much "evidence" there is out there. Just drip feed and relax.

P

AnotherJoe

BLB53 wrote: »

Yes, I am holding off until there is a sell-off of ~10%. Also the drop in sterling v the USD is making global funds more expensive. I expect the pound to bounce back (or the dollar to fall) before I top up my Lifestrategy fund.

Just one person's two penn'orth of course.

10% from when? Today ? Last week ? Suppose there is no 10% drop from a high point until it's gone up 30%, so it would be 20% up from now? Would you invest then, at 20% more than now ?