Stock market investment help appreciated

Alexland

ValiantSon wrote: »

I understand what you mean, but the short term is never the timeframe to be considering with investments anyway. I have a pretty sizeable sum in cash, and choose to keep it that way because I have no intention of selling investments if I need money. I have to manage that sum to ensure it at least matches inflation, but I'm comfortable with it. If there were a market crash tomorrow then I would invest a substantial amount and still be okay, so in a way I am doing similar, although in my case it is more to do with buying if a bargain appears, rather than holding off buying because I worry about current values.

I think we might be reaching consensus however we justify it to ourselves and each other :-)

Alex

Audaxer

ValiantSon wrote: »

I understand what you mean, but the short term is never the timeframe to be considering with investments anyway. I have a pretty sizeable sum in cash, and choose to keep it that way because I have no intention of selling investments if I need money. I have to manage that sum to ensure it at least matches inflation, but I'm comfortable with it. If there were a market crash tomorrow then I would invest a substantial amount and still be okay, so in a way I am doing similar, although in my case it is more to do with buying if a bargain appears, rather than holding off buying because I worry about current values.

I think is the same thing I am doing. You may not be worrying about current values, but you don't want to invest much more at current values which is fine.

ValiantSon

Audaxer wrote: »

I think is the same thing I am doing. You may not be worrying about current values, but you don't want to invest much more at current values which is fine.

No, it isn't the same thing. You are choosing not to invest much because of current values, while I am investing just as much as I normally do, and holding a substantial cash sum for other purposes. If a crash occurs then I may opt to divert some of that cash into investments to take advantage of the lower prices, but that is a case of seizing opportunities, rather than looking to time the market. There is a difference.

Audaxer

ValiantSon wrote: »

No, it isn't the same thing. You are choosing not to invest much because of current values, while I am investing just as much as I normally do, and holding a substantial cash sum for other purposes. If a crash occurs then I may opt to divert some of that cash into investments to take advantage of the lower prices, but that is a case of seizing opportunities, rather than looking to time the market. There is a difference.

Okay, fair enough, but when you say holding a substantial sum of cash for other purposes, can I ask what other purposes, just so I understand what you mean?

ValiantSon

Audaxer wrote: »

Okay, fair enough, but when you say holding a substantial sum of cash for other purposes, can I ask what other purposes, just so I understand what you mean?

Cheek!

I choose to have a substantial emergency fund, and I also hold enough cash to buy a new car should I choose to or need to. I also have extra cash for holidays etc. If a bargain equities buying opportunity appears then I will be able to replenish the cash holdings within a matter of months (without having touched the emergency fund), and if I need a new car in that short window, then the emergency fund will cover it, before it is then replenished in a short timeframe.