Buy the dip??

london21

I have put my full ISA allowance into the vanguard global fund yesterday night. I was going to do it earlier but was having cold feet because i put money in February and dropped by quite a bit. Impossible to time the market but buying the funds on sale feels good. 

Hoenir

WindfallWendy said:

aroominyork said:

WindfallWendy said:

InvesterJones said:

WindfallWendy said:

I've taken £20k out of my premium bonds with a view to shoving it in my S&S ISA.... But thinking I might do a bit this week, a bit next month and maybe a third bit another time... Rather than shoving it all in now.

Thoughts?

What was your plan a week ago?

I was going to shove it all in immediately. 

Strap on and hope for the best, Wendy?

Done 🫣
Wish I'd done it last night. Stupid media coverage making me think stuff and pause for thought. 

I'd switch off from the Trump related noise. Focus on the longer term. 

masonic

WindfallWendy said:

aroominyork said:

WindfallWendy said:

InvesterJones said:

WindfallWendy said:

I've taken £20k out of my premium bonds with a view to shoving it in my S&S ISA.... But thinking I might do a bit this week, a bit next month and maybe a third bit another time... Rather than shoving it all in now.

Thoughts?

What was your plan a week ago?

I was going to shove it all in immediately. 

Strap on and hope for the best, Wendy?

Done 🫣
Wish I'd done it last night. Stupid media coverage making me think stuff and pause for thought. 

Closing prices today aren't significantly higher. The initial euphoria has faded and the majority of initial gains have been given up as the dust settles. Unless you'd have bought yesterday and immediately sold at market open today, you've lost little by waiting a day (and you won't get such trading right very often). It would not be surprising at all to see markets zig-zagging for a protracted period from here.

Altior

Freecall said:

Personally after more than 40 years of investing I think that trying to time the market is a mugs game.

Holding cash and waiting for a fall in the market to move it into equities simply doesn't really work as a strategy in my view (although as with anything else you might get lucky of course).

Buying the 'dip' (and by extension selling the 'peak') is for the birds.

 

As I alluded to, trying to perfect it is a mug's game.

Buying when there is a fire sale certainly isn't.

I'm certainly not claiming to be one of them, but that's how the best strategists play it. Maximum opportunity is when everyone else is panicking. And 40 years of investing should tell you that a period of market panic (ergo a fire sale) at some point is guaranteed.

It's certainly not for everyone, most people would be better off paying in every month, increasing annually by at least reported inflation, and reviewing it periodically/as little as possible. 

aroominyork

Freecall said:

Buying the 'dip' (and by extension selling the 'peak') is for the birds.

There are some mis-comparisons here. Buying a dip is not difficult; buying at the bottom is for the birds. Likewise, buying at the peak is for the birds (even more so than the bottom, since markets keep rising/peaking); selling during a strong bull is not difficult.

kempiejon

And of course when equities decline and cash, gold or bonds hold value those holding different assets in fixed percentages, by frequently rebalancing will be pushing cash in stocks. I'm not that fussed but do have asset allocation as part of my control and I'm holding an unusually higher proportion in cash, bonds and gold. I might rebalance before the end of the summer, depends how much stuff moves about.

DairyQueen

kempiejon said:

And of course when equities decline and cash, gold or bonds hold value those holding different assets in fixed percentages, by frequently rebalancing will be pushing cash in stocks. I'm not that fussed but do have asset allocation as part of my control and I'm holding an unusually higher proportion in cash, bonds and gold. I might rebalance before the end of the summer, depends how much stuff moves about.

Erm....  bonds hardly 'held value' when equities declined this time. The 'rules' have been subverted. Government bonds only hold value whilst confidence in the respective government is maintained. US government appears to have compromised their reserved position in this respect.

WindfallWendy

Given my ISA is part of a 8-10 year plan, I do just need to get over it. 

I think I need to look at stock marketing though as I have some shares which I inherited and so I'm having to declare a bit of income from them, but of course that is up to £500/year I think isn't it, so I think I need to increase my exposure to dividend income!! (Sorry, off on a tangent a bit).

kinger101

k6chris said:

I have read and listened to many comments about "buying the dip" but how do you know where the dip is until after any market has recovered?? 

Thanks!

Ask the dip people why they didn't buy when whatever they were buying right now was available when it was even cheaper. Which it almost certainly was.

These guys never seem to have their crystal balls, magic carpets and time machines working at the same time.

kempiejon

DairyQueen said:

kempiejon said:

And of course when equities decline and cash, gold or bonds hold value those holding different assets in fixed percentages, by frequently rebalancing will be pushing cash in stocks. I'm not that fussed but do have asset allocation as part of my control and I'm holding an unusually higher proportion in cash, bonds and gold. I might rebalance before the end of the summer, depends how much stuff moves about.

Erm....  bonds hardly 'held value' when equities declined this time. The 'rules' have been subverted. Government bonds only hold value whilst confidence in the respective government is maintained. US government appears to have compromised their reserved position in this respect.

Or. From my view using Vanguard etfs for bonds and equities over 6 months
global bonds hedged etf VAGP down 0.62%
global equity etf VWRL down 7%
cash - obviously deflated by 1.5%ish
gold up 17%.

Anyhow those with gold this time could reblance into equities, or buying on the dip, as part of correcting an unbalance in asset allocation which was where I hoped to have positioned my comment.