Re-balance into Equities

Bobziz

masonic said:

Bobziz said:

Isn't the word valuations important ? I.e. it's not the price being at an all time high, it's the CAPE ratio, and I believe I'm right in saying that the CAPE ratio has only been higher twice, dot.com and the 29 depression.

It was also higher than it is today in mid-late 2021, and likewise wasn't a good time to enter the market. Nowhere near the highs Japan reached before its market collapse though. Meanwhile the rest of the world (barring India and a couple of other places) is looking much better value, as are some sectors of the US market. Make of that what you will.

2021 now surpassed. Current s&p cape ratio only ever been higher once. How high will it go, nobody knows. 

Interesting article in the times highlighting the fact that the US often drags other markets up with it but that's not happening at the moment. Dev world ex US has been largely flat for some time now.

masonic

I think we're in for an interesting 2025.

Hoenir

Bobziz said:

masonic said:

Bobziz said:

Isn't the word valuations important ? I.e. it's not the price being at an all time high, it's the CAPE ratio, and I believe I'm right in saying that the CAPE ratio has only been higher twice, dot.com and the 29 depression.

It was also higher than it is today in mid-late 2021, and likewise wasn't a good time to enter the market. Nowhere near the highs Japan reached before its market collapse though. Meanwhile the rest of the world (barring India and a couple of other places) is looking much better value, as are some sectors of the US market. Make of that what you will.

2021 now surpassed. Current s&p cape ratio only ever been higher once. How high will it go, nobody knows. 

Interesting article in the times highlighting the fact that the US often drags other markets up with it but that's not happening at the moment. Dev world ex US has been largely flat for some time now.

Everybody can click their App and instantly trade. No thought required. Speculation or investing. Time will ultimately tell. 

As an aside point. US retail investors are estimated to hold less 10% of their portfolio's in international equities. Lowest % on record. 

Bobziz

Some may find this latest explainer/view from James Shack helpful:

https://youtu.be/a810c3z9_cA?si=ugbrdh6bhFZQQnPn

Bostonerimus1

Rebalance to your desired asset allocation. Why you would have diverged from that because of the budget I really don't know. Yo seem to be more of a tactical investor that a strategic one and if that's the case I cannot help. All I can say is rebalance now and don't try to make short term profits ever again as they are just as likely to be losses.