Invest now or wait

flopsy1973

Been sitting on the sidelines for few months now with large amount of cash 300K to invest, cautious about the situation we are in, recession looming etc. Do I take the plunge and start feeding some or all of it in, keep waiting, or put large amount in something like CGT for now as temporary measure until we see the downturn that i believe is coming. Still have another large amount tied up with HL that also need to transfer over to something also in the coming months. What would others do in my position

Swipe

I'm in your position and I'm drip feeding in a few thousand a day.

Audaxer

You can't time the market and know whether it is going to fall further or start rising. If not sure about investing lump sum at once, another option to consider is drip feeding in monthly chunks.

Albermarle

flopsy1973 said:

Been sitting on the sidelines for few months now with large amount of cash 300K to invest, cautious about the situation we are in, recession looming etc. Do I take the plunge and start feeding some or all of it in, keep waiting, or put large amount in something like CGT for now as temporary measure until we see the downturn that i believe is coming. Still have another large amount tied up with HL that also need to transfer over to something also in the coming months. What would others do in my position

The only way to know the right answer to your question is to be able to see into the future.
If you had invested the £300K at the start of this month it would now be worth 315K approx. 

Be aware that an economic downturn, does not necessarily mean a stock market downturn ( although it might) A possibility of recession is already priced in to some extent. The markets look ahead to what they think might be the situation next year or the year after, although of course unexpected events can have an effect.

daveyjp

As investing is for 5 years as an absolute minimum, and ideally 10 years plus, any short term effects should long be forgotten by the time the money is needed.

The longer you leave it to invest the shorter the length of time the money will be invested.

flopsy1973

Albermarle said:

flopsy1973 said:

Been sitting on the sidelines for few months now with large amount of cash 300K to invest, cautious about the situation we are in, recession looming etc. Do I take the plunge and start feeding some or all of it in, keep waiting, or put large amount in something like CGT for now as temporary measure until we see the downturn that i believe is coming. Still have another large amount tied up with HL that also need to transfer over to something also in the coming months. What would others do in my position

The only way to know the right answer to your question is to be able to see into the future.
If you had invested the £300K at the start of this month it would now be worth 315K approx. 

Be aware that an economic downturn, does not necessarily mean a stock market downturn ( although it might) A possibility of recession is already priced in to some extent. The markets look ahead to what they think might be the situation next year or the year after, although of course unexpected events can have an effect.

Thanks what are you basing those figures on please 

dunstonh

Thanks what are you basing those figures on please 

The markets bottomed out (in the current phase) around 20th June.   Since, then, they have been moving upwards in their usual zig zag nature and a diversified spread would be up around 5%.

Albermarle

dunstonh said:

Thanks what are you basing those figures on please 

The markets bottomed out (in the current phase) around 20th June.   Since, then, they have been moving upwards in their usual zig zag nature and a diversified spread would be up around 5%.

Or  even in more simple terms the main US index is up 4.5% this month .

Audaxer

dunstonh said:

Thanks what are you basing those figures on please 

The markets bottomed out (in the current phase) around 20th June.   Since, then, they have been moving upwards in their usual zig zag nature and a diversified spread would be up around 5%.

That's a good point. If you had at least started investing some of it a month ago, you would had seen some gains. However now is still a better time to invest than if you had invested it all at the start of the year.

ChilliBob

I'm in a similar position and also dripping in. I have been for over 12 months, and some of the last drips have been the cheapest. 

Exodi

Invest all of it on the 14th August at 11:57am - a minute earlier or later will minimise your gains. Let me know if you need the lottery numbers also.

So I don't get warned by mods - this post is sarcasm.