Wait or buy?

[u0206397]

Every month if we got savings, should we just regularly buy more safe blue chip dividend shares/ETF monthly and practise dollar cost averaging. If not, what should we do with the cash? Leave it lying around in bank saving accounts also low interest...

For people with not much time to monitor market everyday, at most on weekends or month ends.

Can't be we hold the cash and wait forever until a market crash like 2008/2009 and miss out on the dividends in the meantime if we had invested?

 

[Oo Fencer oO]

Do a research on Permanent Portfolio.
I'm currently rearranging my holdings to match the permanent portfolio.

 

[kebinu]

Market crash means capital loss. Will the dividend gain be enough to cover the loss?

Start by understanding the pros and cons, reward and risk for all your decision.

Blue chips like nol, noble grp, olam give a lot of people that I know losses over these 3 years.

 

[Epps_Sg]

Can consider to invest cash portion in low volatility bond fund such as mentioned here.. If this is still too risky for you, try bank fixed deposit.
Market timing can be risky, so make sure you know what you are doing and have the correct expectations of possible returns, both positive and negative.

 

[u0206397]

Market crash means capital loss. Will the dividend gain be enough to cover the loss?

Start by understanding the pros and cons, reward and risk for all your decision.

Blue chips like nol, noble grp, olam give a lot of people that I know losses over these 3 years.

As in hold the cash for years until market crash, then bulk buying when share prices are low. Of course, nobody knows when the market will crash like 2008-2009. Maybe as early as tomorrow, or maybe 50 years later. So holding on the cash sounds like a stupid thing to do.

 

[kebinu]

As in hold the cash for years until market crash, then bulk buying when share prices are low. Of course, nobody knows when the market will crash like 2008-2009. Maybe as early as tomorrow, or maybe 50 years later. So holding on the cash sounds like a stupid thing to do.

It's better than investing and have capital loss.

Knowledge, patience and discipline will help to go a long way.

 

[Shiny Things]

Generally you'll want to pump it all in as a lump sum - since markets generally go up over the long term, you want to be invested for as long as possible.

If you're worried about missing the dip, pump half in straight away and dollar-cost-average the rest.

 

[Epps_Sg]

As in hold the cash for years until market crash, then bulk buying when share prices are low. Of course, nobody knows when the market will crash like 2008-2009. Maybe as early as tomorrow, or maybe 50 years later. So holding on the cash sounds like a stupid thing to do.

If one does not have a good investment plan, I think holding 100% cash is smarter than anyhow invest and lose money.
If one is investment savvy and has a 50% stock 50% cash, when stock market crash, having only 50% of capital in stocks halves the losses when compared to 100% capital in stocks. Further, the 50% cash can be used to pick cheaper stocks in market downturns.
Aggressive investor would want to hold lesser cash. Conservative investor would want to hold more cash in hand. So different plan works for different people.

 

[Mecisteus]

Can't be we hold the cash and wait forever until a market crash like 2008/2009 and miss out on the dividends in the meantime if we had invested?

let me ask you a question. did you manage to buy anything during the 2008/2009 financial crisis? i can tell you there alot of people who waited for the crash but in the end, they chicken out and waited longer. because there were simply too much fear in the market.

why dont you do a study of the long term returns of the stock markets? many studies have shown that by holding a diversified basket of stocks and some other assets can generate you positive and decent returns in the longer term.

if you choose to wait or in other words time the market, your potential gains can be higher but of course riskier. on the flip side, the potential losses is also higher.

 

[antonpoh]

For every huge drop in the stock market, there must first be some huge gain.

 

[sojournerr]

Property market still the best to beat inflation, but now buyers are effectively priced out of mkt with all the buyer stamp duty, LTV restrictions. Save hard, there will be a buying opportunity for SG ppty in the next 5-8yrs.

Avoid the Iskandar mkt if you're looking at short-term, early buyers from 2009-2010 already made 100% gains.