With the S&P 500 seemingly reaching record highs almost every day at the moment, are others also holding off buying units of S&P 500 ETFs (and other US/US-related stocks)?
Is this “market timing”, or just being prudent in the face of what feels like an almost inevitable correction at some point?
I’ve been quite dovish about the future uptrend of Equities. Having said that I’ve not seen anything to suggest a correction yet.
Two big factors - Trump & China. The US employment market is strong and the the economy is doing well.
On the face of it a deal with China is coming. But the US election will trigger a reaction. Volatility is a traders dream .
I have a fair chunk in cash from some investments I sold which I will drip feed going forward. If the markets correct then the size of the drip will get better.
It all depends on what your goals are. Dollar cost averaging only works if you intend to hold the funds for decades to come. To recover from a 90% fall requires a 900% gain. Do not feel compelled to invest if it does not align with your personal risk appetite.
And there is the old FOMO. Whilst everyone is gloating about their gains over the last couple of years it can make investing seem so simple. It has been since Trump was elected and it has been easy to make gains. Just have a plan and stick to it.
I’ve stopped buying the S&P for the time being. Not because I see myself as timing the market, I just see better value elsewhere with companies within the FTSE 100 and 250.
I can’t remember who said it but there’s a quote about not buying at all time highs by a famous investor and it’s something that resonated. I’ll have a look and see if I can find it.
From 2016 → today there has been approx. 130 days with record closes for the Dow. If you stopped buying at record highs in 2015 you’d have missed out on a fair amount …
A general uptrend from here but the key action looks to be around 2900 where there was previous support and resistance. Definitely looks bullish but with the economic news at the moment that could easily change. Thoughts?