Right time for entering share market?

Discussion in 'Markets & Economies' started by Andy28, Mar 20, 2014.

  1. petey

    petey Active Member Silver Stacker

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    Theoretically so long as you don't have to sell during a drop you are OK. You just have to hold until the price is up again. You and only you know your emotions though.
     
  2. wrcmad

    wrcmad Well-Known Member Silver Stacker

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    Fixed.
    Theoretically, it has cost you, even if price recovers.
     
  3. Andy28

    Andy28 Member

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    Well Im thinking of just doing the minimum, or close enough to it, so hopefully that will mean I can hold.
     
  4. Mr Medved

    Mr Medved Member

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    Buy when there is 'blood on the streets'.
     
  5. Caput Lupinum

    Caput Lupinum Active Member Silver Stacker

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    Even though managed funds are probably the better option of a beginner, you should still be making an effort to educate yourself to the point where you are confident of making your own trades. With the internet there is a vast amount information you can pick up at no cost but your time and dedication.
     
  6. sammysilver

    sammysilver Well-Known Member Silver Stacker

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    From my recent post on the $10 Billion tapering.

    I think there is also another twist to the monthly meetings. Yellen went on to say that interest rates will be staying low.

    Now it is generally accepted that QE has bolstered the stock exchange to the extent that the companies are all over valued respective to their profit ratios; however, in the US stocks rarely pay dividends but rely on the increased value of the investment as the income source. Here in Oz, stocks are are valued for their dividend over increased share price, as an example Telstra.

    What this tells me is that despite the tapering, the lack of interest returns in other investments will keep the stock exchange on a high for far longer than is logical.

    This I believe will wipe out a great deal of the middle class when stocks crash, as they will have little diversity. I expect that only the astute will survive GFC2.

    Unless you know what you are doing, I'd leave my stock investments within my super and stick to PMs.
     
  7. atlas

    atlas Member

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    Yes, I hadn't heard of them either until I did some research. They were the first index fund in the world and they have a trillion plus market cap in the US. There are a few such funds in the US but I think Vanguard is the only one in Australia at the moment that you can make a direct investment in without going through a broker or master fund (eg. Colonial). So you could invest in a huge range of different index funds through Colonial, but you'd be paying a lot of extra fees for nothing.
     
  8. petey

    petey Active Member Silver Stacker

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    Ukraine?
     
  9. Naphthalene Man

    Naphthalene Man Active Member Silver Stacker

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    This thread has been good thanks. I have been thinking about where to put the daughter's money. She has a couple kgs of silver and a few gold coins that she selected herself (high premiums ones of course) but i wanted somewhere where the dividends can build her account over the next 20-odd years.
    I'll have a look at Vanguard as opposed to ANZ which is what i was thinking. I don't really have time to look over the the share market after work each day/week anymore unfortunately.
    Cheers
     
  10. Andy28

    Andy28 Member

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    I am the same, and apart from that, I am just not that passionate about learning the ins and outs of the share market. The low fee index funds seem the best choice for me if I decide to put anything "in to the share market".
     
  11. finicky

    finicky Well-Known Member Silver Stacker

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    What you need to do is decide if you want to now buy into this long term chart of the All Ords. It's so easy haha. It's a quarterly chart (i.e each bar represents the range of price over a quarter of a year). As you can see it took quite a while to recently break above the 5000 level and the current quarter looks indecisive. The All Ords has had a good run since the Global Financial Crisis ended early 2009. On the other hand All Ords has not reached or exceeded pre GFC height as have the US indices. Indecisive is about the condition you'll be in as you listen to various commentators - someone like Marc Faber says big correction due in US, someone like home grown Clifford Bennett says buy buy buy. We'll tend to follow movements in the U.S.

    All the good stuff looks expensive. All the cheap looking stuff is in volatile risky sectors like Mining Services Companies (NWH, MND, SDM, BYL, SXE, LYL, ALQ) or Gold Mining Stocks. They all look cheap but could get worse or just take years to recover.

    There are some managed funds that are listed companies on the ASX - called LICs (Listed Investment Companies). Some of these have the mandate of holding cash as well as shares and the weighting is at their discretion. So that could be considered as you'll have someone experienced deciding how much in cash, how much in shares?
    http://indexfundinvestor.com.au/list-of-asx-listed-investment-companies/

    Index of All Ordinaries on the ASX - Decade
    [​IMG]


    USA S&P 500 Large Cap Stocks Index - very long term
    [​IMG]
    Source:
     
  12. Old Codger

    Old Codger Active Member Silver Stacker

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    Right time?

    About 3 years after SHTF Day.


    OC
     
  13. petey

    petey Active Member Silver Stacker

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    Keep in mind the home country bias too.

    The S&P500 has it's issues but it's diversified worldwide.
     
  14. atlas

    atlas Member

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    I always go by the old rule: "Time in market is more important than timing the market."

    If you invest a regular amount each month you will be dollar cost averaging, so if you start investing now when the market is high, you will be buying more stocks. When the market is low you will be buying more.

    I started with a lump sum of $5000 for Vanguard (which is the minimum) and then put a set amount in each month. I do put a little extra aside each month to accumulate a lot more stocks in a market crash, but doing a regular investment each month is the foundation of my strategy.

    This scene reminded me exactly why I chose an index fund:

    https://www.youtube.com/watch?v=UTHlXb0PXh4
     
  15. Andy28

    Andy28 Member

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    Is the market high at the moment?
     
  16. glam

    glam Member

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    I thought Vanguard ETF are traded on ASX, like a stock, so minimum would be $500 I think plus brokerage.

    Do you have some other ty pe of vanguard product?
     
  17. petey

    petey Active Member Silver Stacker

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    They do ETF and a Fund.

    ETF = super low management fees but brokerage fees
    Fund = higher management fees but can BPAY I think $100 minimum
     
  18. Naphthalene Man

    Naphthalene Man Active Member Silver Stacker

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    When though is ever a good time to buy in. I have been hearing about this crash for a few years now and thought that i'd invest the daughter's money after that. It hasn't happened and hence i have missed out on some gains over the last few years. Given that she has another 20-odd years to go if there is a crash in the meantime then so be it.

    Petey - i don't really get what you are meaning.
    Being at work I haven't had time to digest the vanguard thing if that is what you mean. Are you saying Vanguard is less diversified worldwide and more US centric?
     
  19. Andy28

    Andy28 Member

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    They have a complete Australian operation it seems. You can Invest with one of their funds, some offering all Australian options, some mixed with global. That sound about right?
     
  20. Contrarian

    Contrarian New Member

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    Just be aware that by using a fund manager you are adding another layer of third party risk.

    There were funds that completely disappeared during the GFC, not because of the shares they were invested in but because of the fund manager.

    C
     

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