Its time to buy

[Adhitya G.]

Hi guys,
 
Widhi asked me months ago whether it is time to buy......
If you want to invest or accumulate in Share market. Now It is time to buy...
If your investment horizon is 5 years ... It wont matter whether market will dip further or US will have recession.
The cycle will probably be back by then plus you will have the advantage to start at low valuation.
 
What to buy.
If there is no target or nothing that we dont know to be confident that a particular company wont go bust tomorrow, just buy Index...
Efficient market theory says so... 4 out of 5 times this should be correct.
 
If you dont have any trust in the whole financial system alll together, buy gold index.. its on ASX as well.
 
If you are currently swallowing unrealised loss, everybody are in the same boat. For me, whilst I have reduced my asset allocation in shares to around 40%...  My unrealised loss are in the tens of thousands. But the value still three times my original investment back in 2000-2001.
 
Do I eat my own medicine. Yes, I will put some more money in the coming weeks. Will still look at the out of favour stocks like IAG (good dividend), index, ABS (good cash flow/ gearing are pretty low), small caps fund, and some recommendation from AFR weekend.
 
Tips... dont be in a hurry... dollar average (invest little by little across some periods)...dont buy hyped stocks

Regards,
Adhitya

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[Aji Widhiwijaya]

Thanks for the advice..

 

Kind of had a gut feeling that it's time to accumulate.. considering that the market hasn't recovered after 10 days..

Especially, I entered after (not before or when) the market recovering from the Nov correction, it's not cheap back then..

 

I bought a minimum parcel of IAG shares at $4.10 back in late Dec.. I've been contemplating to accumulate more and definitely will ;)

It's now around the $3.7 mark (that's 9.27% discount from the original price).

 

Fortunately, my unrealised loss is still within a tolerable limit, due to my overweight position in healthcare stocks and insurance sector.