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Best time to invest in Vanguard Funds
rcha
Posts: 1 Newbie
We have around 40k to invest in our share ISA.
We want to invest in vanguard lifestrategy60 for at least 5 to 10 years.
Current market price is high. Is it advisable to invest now or wait for the good price.
Your suggestion is much appreciate. thank you.
We want to invest in vanguard lifestrategy60 for at least 5 to 10 years.
Current market price is high. Is it advisable to invest now or wait for the good price.
Your suggestion is much appreciate. thank you.
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Comments
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Time in the market over timing the market0
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How long are you prepared to wait? You could wait a year and buy at an even higher price. You could buy a 10% drop after a 15% rise. You would be missing out on dividends while you wait. Maybe you could think about investing in tranches so get the average price over a few months. This could be higher than today's price or it could be lower0
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Current market price is high.
Compared to what?Is it advisable to invest now or wait for the good price.
So, you want to wait for it to go up 20% before investing in it?
When is that good price going to meet your criteria?
It may never fall below todays price ever again. It may be lower tomorrow, next week or next year.
Lets say you get lucky and time a crash perfectly (you won't). What are you going to do in 3-24 months time when the next one comes. If you know the next one could be just 3 months away, would you take it out of the investment?
Trying to time the market it futile as there is always a crash coming.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
To quote from one of my favourite financial independence bloggers Mr Collins.
I have £ xxx,xxx and want to invest. But the market is at an all time high. Wouldn’t I be better off waiting until it corrects 20%?
Here’s the short answer:
If you are asking this question you are not ready to invest. You don’t understand how the game works and what to expect from the ride. Until you do, stay away from the market.
It's from this article titled "Why you should not be in the stock market"
jlcollinsnh.com/2018/03/16/stocks-part-xxxii-why-you-should-not-be-in-the-stock-market/
Summed up nicely by The Escape Artist in this article
"There’s a major market crash coming…"
theescapeartist.me/2018/01/15/theres-a-major-market-crash-coming/0 -
Markets were higher in Jan0
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It is not advisable to time the market. In the considered words if Shia LeBeouf "Just Do It!"
https://www.youtube.com/watch?v=10DQeSk1LaY“So we beat on, boats against the current, borne back ceaselessly into the past.”0 -
If you had invested in the fund a couple of months ago, presumably you would now be thinking of selling?
Should everyone who is currently invested in it be doing the same?
Doesn't sound like a longterm approach when looked at like that, does it?I am one of the Dogs of the Index.0 -
If you must invest in VLS do it now. VLS 60 would seem to me to be a bad choice with 5-10yrs to go.0
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You probably weren't expecting answers like the ones you've got.
Are you able to invest £40K in one go in an ISA?
Anyway, your question was perfectly reasonable on the face of it and, yes, it would be preferable to buy in when prices are low, but no one can actually say what the market will do or when. You can try looking at historical data for trends but that will only tell you what happened in the past not what will happen in the future.
As some have intimated, the market may never go any lower than this - or it might drop like a stone tomorrow. It will likely oscillate as time goes by but the hope is that, over time, it will trend upwards. There will be slumps/crashes/surges along the way. Take a look at the FTSE All Share prices for the last 20 years - the overall direction has been upwards but just look at some of the highs and lows along the way. You just have to hold your nerve.
Remember also that investor behaviour may cause alarming movements in the market price but the performances of the companies within your fund/portfolio will likely still be fine and you should receive useful dividend income.
If you're going to do it, you may just as well get on with it and ride the roller-coaster. I can't comment on your choice of fund - simply because I don't know.0
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