Timing the investment

jimjames

Middle_of_the_Road said:

MEM62 said:

Jamb0 said:

Don’t want to invest then the markets drop 5-10% 

Why not?  In the long term this sort of movement would be meaningless.  

Agreed, but if there is a meaningful crash and you rely on income from the investment, it could have real consequences. Recovery could take years, meanwhile the capital has been substantially diminishing.

Although if you are investing correctly for income then the value of the share doesn't make a lot of difference. Look at the dividend heroes, increasing dividends for over 50 years through every type of market crash and recovery. Anyone holding them would not have been impacted. No guarantees for the future though.

Middle_of_the_Road

jimjames said:

Middle_of_the_Road said:

MEM62 said:

Jamb0 said:

Don’t want to invest then the markets drop 5-10% 

Why not?  In the long term this sort of movement would be meaningless.  

Agreed, but if there is a meaningful crash and you rely on income from the investment, it could have real consequences. Recovery could take years, meanwhile the capital has been substantially diminishing.

Although if you are investing correctly for income then the value of the share doesn't make a lot of difference. Look at the dividend heroes, increasing dividends for over 50 years through every type of market crash and recovery. Anyone holding them would not have been impacted. No guarantees for the future though.

I would guess knowledgeable investors would not have the majority of their funds invested this way, let alone the speculating novices who regularly ask these type of questions.

MK62

jimjames said:

Middle_of_the_Road said:

MEM62 said:

Jamb0 said:

Don’t want to invest then the markets drop 5-10% 

Why not?  In the long term this sort of movement would be meaningless.  

Agreed, but if there is a meaningful crash and you rely on income from the investment, it could have real consequences. Recovery could take years, meanwhile the capital has been substantially diminishing.

Although if you are investing correctly for income then the value of the share doesn't make a lot of difference. Look at the dividend heroes, increasing dividends for over 50 years through every type of market crash and recovery. Anyone holding them would not have been impacted. No guarantees for the future though.

Be aware though that being a "dividend hero" simply requires dividend growth (for the last 20+ years).......it does not require dividend growth matching inflation........and some " dividend heroes" have not achieved that recently. Investors reliant on income from such investments will certainly have been impacted, at least to some degree.