im gonna invest in mutual funds long term...is the market too high to invest now or should i wait and if i wait how long should i wait
2007-02-19 03:38:18 · 6 answers · asked by apo_ares 2 in Business & Finance ➔ Investing
If you plan on holding them long term, it really isn't going to matter when you get in the market. It might be easy to say the market is up for a correction (with the housing bubble and all), but if everyone knew, investing would be easy. I would get in soon and then you won't be stuck waiting for the 'best entry'.
2007-02-19 14:18:10 · answer #1 · answered by AFGuY16 2 · 0⤊ 0⤋
If you sincerely mean LONG TERM then it doesn't pay to wait for the market to go lower - if it doesn't you will regret not getting in now - if it does, you and everyone else will think it is going to go lower still. Long-term investing via mutual funds is not about timing the market.
Having said that - the key is to diversify - a minimum of four funds:
bond,
index equity,
small company growth,
international equity.
put equal amounts into each. About every twelve months, re-allocate your funds to a 25% share in each fund again.
Avoid sector funds i.e. funds that invest in one industry or one country until you have a satisfactory level of wealth.
2007-02-19 05:29:08 · answer #2 · answered by rarguile 6 · 1⤊ 0⤋
When looking long term timing the market is a dangerous game. If you are going to hold on to the money for sure than you may want to wait a couple of weeks to see which direction we are headed. However, the money can only work for you if it is in the market. I would suggest Dodge and Cox International to start. Don't buy load funds.
2007-02-19 03:48:48 · answer #3 · answered by Charles C 2 · 2⤊ 0⤋
no point waiting.
markets as a whole is bullish. "all" are going up and up.
unless you are talking about a particular share /stocks than you will need to look into more details.
mutual fund are doing fine and will continue to do well. unless un-foresee crisis in political, social, or economic affairs. on what magnitude will depend how long the crisis last.
fund manager are there to take care of that.
all the fund manager will want their portfolio to look nice as well.
2007-02-19 04:34:58 · answer #4 · answered by Spidy Josh 2 · 0⤊ 0⤋
I think the markets in the U.S. are overvalued and due for a correction. I think the stock market will be substantually lower from these levels by the end of the year.
Save you money for now, and buy and hold AFTER the market stops dropping.
2007-02-19 03:57:13 · answer #5 · answered by bob shark 7 · 0⤊ 2⤋
No.
2007-02-19 06:45:25 · answer #6 · answered by Anonymous · 0⤊ 1⤋