Invest Now Or Wait For A Stock Market Crash?

US stocks and by default global index funds are expensive by any measure, but does this mean we should wait until a pullback in order to invest? In this video we look at valuations at the moment and what we should do about it. Should we hoard cash waiting for better opportunities, move our money into cheaper markets or do nothing at all?

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DISCLAIMER
All information is given for educational purposes and is not financial advice. Ramin does not provide recommendations and is not responsible for investment actions taken by viewers. Figures that are quoted refer to the past and past performance is not a reliable indicator of future results.

[arwing]

As the old saying goes "better time in the market, then timing the market"

[peterhoughton]

‘The best time to plant a tree was 20 years ago. The second best time is now.’

[notcesar]

Buy high, buy low, buy average, and hold. Never fails

[anthonybrown]

Never really had lump sums i just invest what we can easily afford and carry on living life always 100% equity plus emergency fund and savings for specifics.

[twyscape]

Never wait, just buy in gradually and frequently.

[PDCRed]

The top 7 skews everything. Small caps look like a great opportunity.

[wqhrxin]

Nice break down and analysis including use of graphs. Thanks

[MrDuncl]

Ramin got right to the end before mentioning drip feeding also known as Pound Cost Averaging. That is my answer to reducing risk.

[benjamintaylor]

Fantastic analysis Ramin, thank you for this.

[kindke]

Whenever I have put a large lump sum in the market has always crashed or pulled back straight after.

My ability to pick tops is incredible.

[jimbojimbo]

Are yes bond funds which have not yet recovered

[RickSanchez-dnrd]

Good analysis, reassuring, simple & practical. Weather the storms people.

[louisd.]

Data driven explanation as always, great content, thanks Ramin!

[txnytmc]

Comparing markets based on PE is not a good idea. Different markets have different sector compositions. UK has zero tech and is overweight financials energy and industrials that naturally have lower PE.

[juniormint]

I really like the straightforward advice at the end of the video. Seems obvious but so many people find this stuff intimidating

[salochinthims]

Great advice as always Ramin, and backed up with some solid data. Really enjoyed the Making Money Podcast you did with Damo. Legend 🙌

[kyungshim]

I'm mostly invested in Canada and in Energy and Banks. Luckily these sectors pay nice dividends. So I will continue to hold and collect the dividends even if the prices are not trending up at the moment.

[beauchampfrancois]

I'm lucky... I have money in a RRSP (Canadian equivalent of the 401K), other non taxable accounts, a stock market portfolio and real estate. Nowadays I sell any profitable stocks and put the money back in my real estate. I suggest people look for real estate deals, there are still some out there. An extra house is sometimes enough. Just repay your mortgage when times are uncertain, take the money out when the rates are low and the stock market is positive. Moving money around to safer investment vehicles doesn't guarantee success but it helps you sleep better if you feel insecure. Great video, great explanation.

[davidhaylett]

If you don’t have much saved you can just buy monthly regardless of valuation. But if you have £200, 000 plus can you watch that fall by 50% and not recover for 10 years ?
Ben Graham recommended 50% in stocks and 50% in bonds as the default. And rebalance after a 5% movement. And if stocks are pricy reduce to 25% with 75% bonds and the opposite if stocks are low. Sounds good but the definition of expensive has to be clearly defined. If not just stick to the 50/50 and rebalance

[MattMcQueen]

Just a note that Vanguard UK don't have a US Small Cap fund. However, they do have a Global Small Cap fund (which is around 65% US), which might be a good alternative. The fee for that is 0.29%.