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Is it a good time to invest in ETF index funds?

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So_Cynical said:
Perhaps the appropriate ending of the everything bubble is anything and everything, i really dont think its gona take much, have been some big losses in some crypto based assets lately, talking 60 to 90%.
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Yes m crypto is down 30 % but I’m still up 20% overall
 
Agreed, I am a bit cautious to buy at the top of the market if I’m investing a large sum of money, that’s all
 
Logique2 said:
How much ; for how long ; what type? There are so many different ETFs.
Just be clear in your own mind on what you want to achieve, and especially how patient you're prepared to be.
ETFs for retail investors -have many fans amongst the professionals.
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Hey thanks for that, much appreciated
 
bondog said:
Agreed, I am a bit cautious to buy at the top of the market if I’m investing a large sum of money, that’s all
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check out the rates your broker charges SOMETIMES it is better to buy some now ( oops ! i mean soon ) and buy some more later ( hopefully cheaper )

now logic will tell you we must be somewhere near the cycle top , but the market is clearly irrational currently , so the actual top might be weeks away , maybe months away , could be even years away

there is NO easy answer even when the market plunged like March 2020 ( then you are trying to guess how low it will go ... and IF it will recover anytime soon )

the OTHER option is to save some cash as you go , so you have a cash reserve for that correction , BIG dip or maybe even the crash we all kinda dread

and yes making the correct decision ( for you ) is HARD , just like those high-flying fund managers trying to NOT blow up billion dollar portfolios.

BTW caution is GOOD , but investing is all about controlling your GREED
 
"Agreed, I am a bit cautious to buy at the top of the market if I’m investing a large sum of money, that’s all".


You don't have to be all in or out.

Consider investing 10% or whatever percentage you feel comfortable with.

As already said, no one knows what the market will do but how long do you wait.
 
bondog said:
Agreed, I am a bit cautious to buy at the top of the market if I’m investing a large sum of money, that’s all
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Ok. First statistically it has been shown a lump sum is better than Dollar Cost Averaging. It's psychological and DCA moderates some of the fear factor associated with lump sum investing.

Here is one article. There are many others.

Dollar Cost Averaging vs. Lump Sum Investing (DCA vs. LSI)

Dollar cost averaging and "lump sum investing" are two different timing strategies for getting cash into the market. Let's compare them.
www.optimizedportfolio.com

As to timing the market, an interesting opinion on that from a few years ago.

Busting The Myth Of Market Timing

Investors can be their own worst enemy – selling at the times of greatest panic, and potentially then missing out on subsequent gains.
www.forbes.com

PS: I am not trying to convince you what to do or what not to do. You have to decide but it's good to thoroughly know yourself and your limits. The market runs on fear, greed, hope and frustration. You should determine how much each of those will influence your investing.
 
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Austwide said:
You don't have to be all in or out.
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^This, me too. I hold VHY ETF in my Super and at this point in time I am not selling or buying. Having cash on the sidelines for any potential crashes is a good idea. On the other hand, having some in a rising market (if it happens) and watching it go to real silly prices I will sell a bit more off too but never all of it.
 
bondog said:
Thanks you, I think I’ll just sit on the sidelines and watch it for a week or two with this omicron around who knows what’s going to happen’
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I do not believe a week or 2 will give you much more clarity.
Omicron is noise . But there are real issues with the market, the valuation,massive docial engineering so where to from that.i do not have the answer.whatever the decision to invest or not, you need to weight risks on both
 

He he. I've been placing funds into ETFs since late 2002 - and in LICs since 1995. Every time I put funds into the market, at lot of pundits probably thought the market was at its peak.
 
bondog said:
Agreed, I am a bit cautious to buy at the top of the market if I’m investing a large sum of money, that’s all
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that's what i thought too back in 2014 when i was looking into S&P 500 index ETFs. it had already gone up significantly over 2012-2013. but then an inner voice spoke up... mate, just go for it, you've gotta go international, you are 100% exposed to Aust right now which is becoming more and more of a one trick pony, if mining softens, you'll be stuffed. so i started DCA'ing into IVV + VEU, and sure am glad i did.

i guess listen to what the 2 little blokes sitting on your shoulders have to say, the one clad in white with a halo and the one clad in red holding a pitchfork. if the one telling you to invest (maybe for you it's saying "you are 100% exposed to real estate, you've gotta diversify into other asset classes", i dunno, you're the only one who can hear what those 2 blokes are saying) is more convincing than the one saying "but you'll be buying at the top!", then just go for it.

if you still have a nagging fear of buying in at the top you can always use DCA (i did). as mentioned by Belli there are studies showing that most of the time diving in with a lump sum performs better than DCA (i've read other studies suggesting it's about 70-30 in favour of lump sum). in hindsight i would've been better off going in with a lump sum back in 2014 instead of DCA'ing in over 2014-2016. but this might be one of the 30% where it doesn't. for the record i do think it is looking a bit toppy now, then again i thought it was looking toppy back in 2014 as well...
 
bondog said:
Hi Belle,

sorry what do you mean by your comment?
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suggestions ( or food for thought ) is how i see it

but back to you buying VAS and VGS , see how waiting even two days can alter you long term outcome ( a $3 saving for VAS means 3% more units magnified by your time of holding them )

now given the slide in the last two days ( which MIGHT continue tomorrow , or rebound )

you COULD throw in your order for VAS at say $92 or even $90 and see if you are lucky

just a suggestion , of course ( calculate what is best for YOU ) if the order misses you can reassess over the weekend
 
Thanks for the info, much appreciated
 
Love the analogy of the two guys on your shoulders! I work with my intuition/Gut mostly so I’ll sit and watch more a bit, build my confidence first which feels right ?
 
Belli said:
He he. I've been placing funds into ETFs since late 2002 - and in LICs since 1995. Every time I put funds into the market, at lot of pundits probably thought the market was at its peak.
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And today the ASX 200 is 2.7% cheaper to buy than yesterday - timing matters, with 20 years in the market you know that.
 
So_Cynical said:
And today the ASX 200 is 2.7% cheaper to buy than yesterday - timing matters, with 20 years in the market you know that.
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Wouldn't have a clue what the particular prices are at the moment. No spare funds to place in the market so it doesn't matter to me. When I do get the funds shortly, they will just go in on that day no matter what.

Should menion it doesn't matter to me how others approach investing or what they invest in. I'm only concerned about myself in that regard and what suits me.
 
This has turned into a really good thread.

I was trying to place something I'd read about Buffettt and index funds, so tracked it down:

From: make it
...[Warren] Buffett warned against investing in individual stocks, as “I do not think the average person can pick stocks,” he said... Instead of stock picking, Buffett suggested investing in a low-cost index fund..
..he has instructed the trustee in charge of his estate...I just think that the best thing to do is buy 90% in S&P 500 index fund.”..
 
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