Hi all,
For weeks I have been thinking that the stock market would significantly dip again approaching the march minimums, so I have been patiently waiting, mainly liquid with cash and gold and a very small portion of investments.
However, the rise seems strong, both in Europe and in the USA, so I am starting to think that I may have missed the chance.
Nonetheless, I think that the market is very over-priced so I just cannot bring myself to buy anything . P/E ratios and debt ratios are going to rocket once we start to get updated balance sheets (increased debt) and income statements (lower profits/margins), adding the increased unemployment and the terrible economic and social damage, one would think that companies should be crashing and yet the stock market is rising like a rocket! . It cannot all be solved by pumping money into the economy.
So I wanted to ask… what are your thoughts?
What is your strategy?
Let’s compare and see what happens.
My initial idea was to wait for the dip and use the pies to invest around 6% a week over a period of 12 weeks, with 2 further sets of 15% to be invested manually if I think that we have reached a potential dip, to try and catch the stocks at a reasonably low price or in stocks that I decide as we go.
Yes I think the US market, specifically, is destined for a fall, but you can’t live in fear of it, otherwise you’d never trade, ever! Just keep your eyes and ears open.
I think you hit it spot on in your post.
I feel just the same and I invested just after the bottoms.
30% invested right now, 2/3 of my money waiting to buy in at another dip.
I’m trying to look at some choices I have not normally considered.
I think if you are looking to buy some ETF’s, possibly wait a little until better pricing or just put 5% of your capital to work.
Maybe think about buying some individual stocks with great possibility of returning to their mean average prices.
BP and Royal Dutch Shell are my only open stock trades right now, but im looking to add DISCA soon. If you can buy into small positions of good companies and hold them for 1+years, I think you won’t go far wrong.
This way, you feel like you have gotten your feet wet in the market, but are not going to get burned too bad if we have another downturn.
Good luck though, it’s one for the history books that’s for sure!
EDIT - Tip: Use limit orders at prices you feel comfortable at buying in at. Takes the mental stress of it all out, and you can place your orders ahead of time.
If they hit - GREAT!, if they don’t - it was never meant to be.
The hard part is waiting that’s for sure.
Fear of missing out is definitely kicking in, so a downturn is coming I think.
Even if you buy at a slightly higher price, providing the amount is reasonable, if it dips and you rebuy - your average price goes down on the initial order. So don’t worry too hard about buying in, because even if it dips, you get to reduce your average cost price. Win win.
Look after your risk though first and foremost. The profit will look after itself thereafter
What I do, I pick companies I like, at price I like.
Set Limit Orders for initial position then next limit order 5-10% drop depending on volatility of the company and so forth.
Haven’t had trigger for week or so, but so far I am happy with reached prices, willing to patiently wait for prices to come to me rather then jump the gun…
I’m with you on this but just to play a bit of devils advocate, value investing isn’t the only strategy. Growth investing is still a great possibility with all the tech companies out there.
Look for innovation, disruptive technologies. There’s fintech with currency going more and more digital, biotech with genomics CRISPR editing, AI, robotics, self driving cars, 3d printing, etc.
Not everything has to be an undervalued Coca Cola
Be as cheeky and arrogant as you want with a Limit order.
I’ve put some incredible Limit orders in, for prices I didn’t really expect to get, only to receive an alert of my purchase, to huge surprise and eventual profit.
. P/E ratios and debt ratios are going to rocket once we start to get updated balance sheets (increased debt) and income statements (lower profits/margins), adding the increased unemployment and the terrible economic and social damage, one would think that companies should be crashing and yet the stock market is rising like a rocket! 
. It cannot all be solved by pumping money into the economy.