Is it a good time to enter the market?

Doh! · 10 March 2008

Hi I"m looking for a bit of reassurance here. I've been looking at investing now for about 5 years, but have only just decided to enter the share market with a equity loan of 50k this has has been advised through a well respected finance company. My itchy feet in the past have prevented me from making some fabulous gains in the last 5 years. Doh!
Any way to the future. Ive heard the saying "you can't time entering the market" but I have to ask is it a good time to enter the market now has the market bottomed out?

Nyden · 10 March 2008

Unfortunately, no one here is really allowed to tell you if it's the right time to enter You should seek professional advice, from a licenced advisor.

I will say this though; I certainly wouldn't be entering this volatile market on borrowed money

(Edit; Hey! We have the same avator! Mine seems to be more cheery though

Oh, & welcome to the forum!

Trembling Hand · 10 March 2008

Re: Is it a good time to enter the market ?

Doh! said:
just decided to enter the share market with a equity loan of 50k this has has been advised through a well respected finance company.

What makes them well respected and does that mean they will refund you any loses?

Doh! said:
Ive heard the saying "you can't time entering the market"

Yes you can. but if YOU can't why would you jump all in with leverage in one go

Doh! said:
I have to ask is it a good time to enter the market now has the market bottomed out?

What makes you think this IS the bottom?? And to be blunt you have wasted the last 5 years on the side lines not learning how you should trade/invest. To be even more blunt you are crazy to be entering the market with loaned money and asking these questions. You obviously have a knot in your stomach and for good reason. You just walked into the casino and put $50 Gs on black.

Nyden · 10 March 2008

Re: Is it a good time to enter the market ?

Trembling Hand said:
What makes them well respected and does that mean they will refund you any loses?

Yes you can. but if YOU can't why would you jump all in with leverage in one go

What makes you think this IS the bottom?? And to be blunt you have wasted the last 5 years on the side lines not learning how you should trade/invest. To be even more blunt you are crazy to be entering the market with loaned money and asking these questions. You obviously have a knot in your stomach and for good reason. You just walked into the casino and put $50 Gs on black.

You seem to be a little too aggressive here towards this fella TH, be nice :

Awesomandy · 10 March 2008

Re: Is it a good time to enter the market ?

Trembling Hand said:
You just walked into the casino and put $50 Gs on black.

Not quite. In such situations, I would think that you are more likely to make money in the casino then putting money blindly into the market.

Still, irrespective of what the market does, given you had itchy feet for the past 5 years watching everything go up, I would be very doubtful that what you are planning to do would match your risk profile. Just because you have a medium-long time frame, it doesn't automatically mean you should get a loan and invest in the market. There are a lot of other factors that are used to determine your risk appetite. I would suggest you to have a look at other forms of investments as well, and start with a smaller amount of capital to, as they say, "get your feet wet".

P.S. I don't know your exact circumstance, but given the (limited) information I have so far, the "well respected financial company" probably won't be so well respected in the future if they continue to give advices like ones they've just given you.

3MT · 10 March 2008

I agree with the above post. Start off with a smaller capital base to get your feet wet, you can always increase it over time.

I would also go and do some research on a respectable fund manager and invest with them. So many of us want control over the way we invest and over-estimate our ability to make sound investment decision -- its probably wiser to find someone who manages money on a full time basis than sift through all the stuff on this forum and everything else available on the internet. (not that you can't learn anything here, but for someone relatively new to the game, inexperience in this game is very costly)

As for whether its good to invest now? Like you said, you can't time the market, but having missed out the last 5 years and watching it pull back this far, its better to enter the market now than in november last year. This is just a blip on the long term trend, but that's not to say the blip won't still drift lower for a while.

but that's not advice, just an opinion.

theasxgorilla · 10 March 2008

Read TremblingHand's post and ask questions about things you don't understand or challenge things you might not today agree with.

ASX.G

bvbfan · 10 March 2008

Whether it's a good time to enter the market is depending on what you want.

A slow steady approach to build wealth over a number of years? If so then I don't think there is any bad time to enter the market.
Most people won't time the top or the bottom of any market but history will suggest you'll come out on top in the long run.
That said if you had invested in 1929/30 it would have taken about 15/16 years to break even.

If you are looking to trade and make short term gains then maybe this isn't the market for you unless you are willing to accept some losses and willing to develop a trading style/system.

I think getting a good education during a bear market will do you a world of good but that's my opinion and probably based more on the fact I started in 2001-3 bear.

Don't go out and buy with all your cash.

Also you don't mention whether you will add to the portfolio over the year or if it's just the 50K which will be all you will use.

theasxgorilla · 10 March 2008

Re: Is it a good time to enter the market ?

Nyden said:
You seem to be a little too aggressive here towards this fella TH, be nice :

It's 50k of leveraged money. You want 'nice', or effective? TH trades for a living. Heed the messages contained within.

nioka · 10 March 2008

Doh! said:
Hi I"m looking for a bit of reassurance here. I've been looking at investing now for about 5 years, but have only just decided to enter the share market with a equity loan of 50k this has has been advised through a well respected finance company. My itchy feet in the past have prevented me from making some fabulous gains in the last 5 years. Doh!
Any way to the future. Ive heard the saying "you can't time entering the market" but I have to ask is it a good time to enter the market now has the market bottomed out?

What "well respected" financial adviser would recommend entering the market with borrowed funds at a time when interest rates are high and the market is volatile? Who respects him? What's his angle.

MRC & Co · 10 March 2008

Do you know which stocks you are going to invest in and why?

I would not enter now, personally, not for long-term investing.

I would wait until it at least makes higher lows and higher highs indicating the trend has turned up. Its best if the first reaction does not breach the most recent pivot high indicating trend strength.

Just a few thoughts and something you may wish to research.

strudy · 10 March 2008

At this point in time the share market is down on average around 25% to 30%. This also depends which stocks you are looking at as some are down further than others.

As to when the share market will start to go upwards again consistently is anyones guess, for no one really knows.

If you take a look at past history the market has always eventually climbed again to new heights only to recede again. The biggest factor here is the time element which is the main random factor.

At this point in time it could pay you to do some research into good solid companies which have had a serious decline in their share price and look at buying these for a medium to long term investment.

An old saying "Buy in gloom and sell in boom" could well apply here.

Doh! · 10 March 2008

Re: Is it a good time to enter the market ?

Trembling Hand said:
What makes them well respected and does that mean they will refund you any loses?

Yes you can. but if YOU can't why would you jump all in with leverage in one go

What makes you think this IS the bottom?? And to be blunt you have wasted the last 5 years on the side lines not learning how you should trade/invest. To be even more blunt you are crazy to be entering the market with loaned money and asking these questions. You obviously have a knot in your stomach and for good reason. You just walked into the casino and put $50 Gs on black.

a guy has to start somewhere, I am a mr average i don't want to live my life saying "what if" there comes a time when you have to make some decissions about your future. rre you going to grind it out paying off a home loan then retire, not me. i want make a start

NO this advisor isn't going to garantee me against losses no advisor would.

Is'nt the #1 golden rule of investing

investing is a long term stategy

my propsed investment will be in a managed share fund
spread across 5 different funds

Trembling Hand · 10 March 2008

strudy said:
An old saying "Buy in gloom and sell in boom" could well apply here.

No. Wrong cliche for the wrong time.

try "The market can stay irrational longer than you can stay solvent"

As said by John Maynard Keynes when using other peoples money. Said some 70 years ago after he went bust.

Doh! · 10 March 2008

Re: Is it a good time to enter the market ?

Awesomandy said:
Not quite. In such situations, I would think that you are more likely to make money in the casino then putting money blindly into the market.

Still, irrespective of what the market does, given you had itchy feet for the past 5 years watching everything go up, I would be very doubtful that what you are planning to do would match your risk profile. Just because you have a medium-long time frame, it doesn't automatically mean you should get a loan and invest in the market. There are a lot of other factors that are used to determine your risk appetite. I would suggest you to have a look at other forms of investments as well, and start with a smaller amount of capital to, as they say, "get your feet wet".

P.S. I don't know your exact circumstance, but given the (limited) information I have so far, the "well respected financial company" probably won't be so well respected in the future if they continue to give advices like ones they've just given you.

one reason i didn't start 5 years ago was because of family and mortgage since then my income has more tha doubled

would you say that most investors start by saving there own money

Trembling Hand · 10 March 2008

Re: Is it a good time to enter the market ?

Doh! said:
Is'nt the #1 golden rule of investing

investing is a long term stategy

No. The number 1 rule is to not lose you capital. Best way to do that is make sure you know what you are doing before you enter the water.

Doh! said:
a guy has to start somewhere, I am a mr average i don't want to live my life saying "what if" there comes a time when you have to make some decissions about your future. Are you going to grind it out paying off a home loan then retire, not me. i want make a start

Wanting to make a start is fine but that is with education not the buy button.

Doh! · 10 March 2008

Re: Is it a good time to enter the market ?

theasxgorilla said:
It's 50k of leveraged money. You want 'nice', or effective? TH trades for a living. Heed the messages contained within.

I don't see the point, people leverage money every day.
cars, homes.etc. etc. etc
if you can afford the repayments why not start with borrowed money?

Ashsaege · 10 March 2008

Knowledge is wealth. Invest in your education first mate. Minimize part of the risk by knowing and understanding what you are doing. Don't be a naked investor... which is what the richest man in the world has been saying.

If you dont have the knowledge, then it probably isn't the right time to enter the market.

Doh! · 10 March 2008

Re: Is it a good time to enter the market ?

Trembling Hand said:
No. The number 1 rule is to not lose you capital. Best way to do that is make sure you know what you are doing before you enter the water.

Wanting to make a start is fine but that is with education not the buy button.

you only make a paper loss the day you pull out
I'm looking at 30 years + of investment

i believe i'm starting out the correct why under the wing of a managed share fund

nomore4s · 10 March 2008

Doh! said:
I don't see the point, people leverage money every day.
cars, homes.etc. etc. etc
if you can afford the repayments why not start with borrowed money?

The difference in using leverage in the market is you can lose money a hell of alot faster than normal. What happens if you jump in now, with high leverage and the market continues to drop and you get a margin call?

I would suggest you do a bit more research before entering the market, now isn't the time for a newbie to be entering the market with leverage imo.

Ashsaege said:
Knowledge is wealth. Invest in your education first mate. Minimize part of the risk by knowing and understanding what you are doing. Don't be a naked investor... which is what the richest man in the world has been saying.

If you dont have the knowledge, then it probably isn't the right time to enter the market.

Wise words

Is it a good time to enter the market?

Doh!

Nyden

G.E. Money Genie

Trembling Hand

Can be found on the bid

Nyden

G.E. Money Genie

Awesomandy

3MT

theasxgorilla

Problem solved... next bubble.

bvbfan

theasxgorilla

Problem solved... next bubble.

nioka

MRC & Co

strudy

Doh!

Trembling Hand

Can be found on the bid

Doh!

Trembling Hand

Can be found on the bid

Doh!

Ashsaege

Doh!

nomore4s

Commonsense isn't that common

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