Asked on 23 Aug 2020
Well, looking back on Aug 2020 from Jan 2021, it seems like everything just keeps going up. Continue to add to your positions as long as you have cash flow. After all, time in the market beats timing the market.
If it makes you sleep better at night, you can keep some funds in cash to capitalise on any significant dips.
Ditto to what Chris, YJ and Jesslyn said.
In addition, if you feel like you don’t have the luxury of having a steady stream of income to keep pumping money in while the price is dropping (like me LOL), make use of asset allocation. You can even do this with one ETF and your cash in hand.
Let’s say you want SPY (it’s the SP500 ETF) and cash in hand. You decide the allocation will be 80-20 SPY-Cash. So you go ahead and buy SPY. Now let’s say the market crash like 30%. So now the allocation would be 73-27. So what you do is use the cash and buy more SPY. Make the allocation go back to 80-20. This is so that when the market recover, your overall asset will become bigger than what it was before. This is very over simplified but you can figure out more details by googling.
Hi WR, I am a believe in long term market returns and always maintaining an equities market exposure as a growth asset class. I also believe equitieis has in the past and will in the future always be moving in a upward sloping positive skewed move up. Yes there will be volatility and cycles but the long terms trends are hard to dispute. I am also a believe that market timing is an impossible or very difficult thing for non-professional investors to be doing. You can just look back to this March and what all the pundits and even really famous professional investors were saying during Feb/March when markets were collapsing and then subsequentlyl when markets rebounded. No one can predict markets. The large market capitilisation, growth companies have indeed done very well recently and in the past 10 years. We believe that being passively invested through a market cap weighted ETF that replicates the MSCI ACWI makes sense and Endowus is a the lowest cost and most effective way to invest in Us and global market across all your source of funds here in Singapore.
Maisul, Youtuber at Google (Channel : Say Do Invest)
Answered on 24 Aug 2020
I would honestly keep at least 30% cash to be always ready.
Again, nobody knows where the market is heading in the future but being prepared is good so you can deploy when the overall market corrects just like in march , the all time lows.
Being fully invested is never a good idea.
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