Right time for entering share market?
- Thread starter Andy28
- Start date
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.
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.
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.
atlas
Member
Andy28 said:
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.
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
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
Andy28 said:
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
USA S&P 500 Large Cap Stocks Index - very long term
Source:
Right time?
About 3 years after SHTF Day.
OC
About 3 years after SHTF Day.
OC
atlas
Member
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
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
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?
petey said:
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?
Contrarian
New Member
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
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