Should You Buy Index Funds at All-Time Highs?
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- เผยแพร่เมื่อ 27 มิ.ย. 2024
- Markets are at all-time highs. Does that mean it is a terrible time to invest and should you wait instead for the inevitable pullback?
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Sources:
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Timestamps:
00:00 - ATH
00:48 - Doubt
02:48 - All the time
03:36 - Crash
04:30 - Cash
04:58 - Swap
07:00 - Performance after a high
07:33 - Be honest
08:54 - Rise & fall & Rise
09:52 - Maniac
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Quesion? When you put 10% growth after an all-time high, was that accounting for inflation?
The ending edit of this video was a bit good.
Do you have a referral for Dodl? I was thinking of moving my Cash LISA to them as a Share LISA
Can you do Fidelity? No one on TH-cam seems to put much out about them in the UK.
Heard someone say it's important to stick to stocks that are recession-proof, hence I'm looking at index funds, or are there better recommendations? I'm 31 and I've got $150k ready money to invest for my future.
the idea is to look for stocks that have paid steady, increasing dividends for years(or decades), and have not cut their dividends even during recessions, speaking with a proper advisor can be very useful most times in getting the job done.
The issue is that most people have the “I want to do it myself mentality” without being well-qualified, hence get burnt during crash, no offense intended. Thankfully, I've attained nearly 7-figure after subsequent investments, since the corona-outbreak in Jan.2020 to date, only cos I know enough to seek expert counsel at uncertain times..
@@MAanderson153 quite inspiring! could you be kind enough with details of your advisor please?
in dire need of proper asset allocation
Personally, I delegate my excesses to someone of great expertise ''Katherine Nance Dietz'' preferably you can vet her online, her qualifications speak for itself
curiously inputted Katherine Nance Dietz on the web and at once found her consulting page, was able to schedule a call session with her, thanks for putting this out ..
Time in the market beats timing the market
Yes, Kenneth Fisher quote. But, this is dependent on your age, timeline horizon and market level/knowledge.
I agree with the guy above if you’re 60 expecting to retire soon then it’s better not to but if you’re in your early 20s and saving for 40s then you have the time to play long game
I agree with this but not looking forward to those 18 month to several year periods of negative values 😂 after some fiscal event. But stay the course to the next high!!
Normally time beats timing but not in AI bubble. You all blink as always and want belive in paradise 😅😅 you needs to back to history 2000, 2008 , 1987
The "time in the market" quote applies less when your investments are concentrated in tech stocks that don't pay a dividend.
I just keep buying whenever I have spare cash no matter what.
Exactly. Doesn't make a difference especially if you're going to invest for next 10 plus years. I just buy in with every pay check regardless of price.
This is the way
Ditto
Call it mad, but that montage at the end was actually very uplifting.
Thanks for rekindling my desire to believe in humanity and its abilities again.
Exactly what I was going for, nice to remind ourselves that humans are pretty amazing.
Absolutely loved it.
spot on !
Right!?!?
Goosebumps bro. Goosebumps.
This is such a genuinely brilliant video. I found the info really useful, but even if I disagreed, critically the setup, editing, theme and quotes, it's the best thing i've seen on youtube this year. Thanks for your effort to make great quality videos, it is valued.
It’s not “advice” 😜
Thank you for the lovely feedback! I spend far too long thinking about things like theme and story so it’s music to my ears to hear you enjoy those elements.
It's really good :)
You've set the bar high with this video Damo, you're going to need a longer pole for future content.
I’m so tempted to crack a joke about the length of my pole here but I won’t.
@@DamienTalksMoney
Knew it!!🤣🤣
@@DamienTalksMoney - Was a really good one, fun watch but got those serious points across!
Have you found a few extra centimetres lately?
"Threats of nuclear war, famine, oil prices, Liz Truss" 😂😂😂
Honestly she did more damage to the Uk economy than any of the others have recently.
@@DamienTalksMoney Oh believe me I know! What kind of took me by surprise is how easy it was for someone as mad as her to get into the highest position in the country and then how easy it was for her to be able to do what she did without anyone stopping her! I mean, could she have pressed the nuclear button so easily as well?!
But it was hilarious how you slipped that into this video, well played 😂
Hey. She opened up new pork markets 🐷
Farage supported her neoliberal crap, too.
For people unfamiliar with UK politics as me: Liz Truss was the prime minister of the UK between September and October 2022. More information on en.wikipedia.org/wiki/Liz_Truss
I remember buying my first Index Fund in April 2022. It dropped in June. I bought more every month and managed to even out my losses, that then turned into gains as the months went by.
Now up 22% over two years.
Consistency is key.
Would you recommend throwing a lump sum instead of every month.I guess the same would happen?
@@alwayslearning7672monthly investing is better, dollar cost averaging
@@alwayslearning7672I recommend looking into dollar cost averaging (the act of investing little and often). It is generally preferable as it helps balance out the peaks and troughs of the market.
@@alwayslearning7672 if you have a large sum of cash, it's better to invest it - time in the market is better than timing the market. Most people don't have it and just buy in with a portion of their paycheck every fortnight or month. Obviously don't go all in, you still need 6-12 months expenses in cash so you can handle emergencies without the need withdraw funds, especially if the emergency coincides with a down turn in the markets.
@@alwayslearning7672 Have a read up on dollar cost averaging
The s+p 500 has been at all time highs for approx 20% of it's life. Not too many people that have invested along the way would regret it, even if there timing was so bad they only ever got in on the highs
Buy and hold for life
Best investment I ever made
Love this video for the aesthetic as well as the content. The ending was awesome! I'm looking forward to your next video.
I have been wondering this question for a couple of months. Thanks Damo
That ending montage has got me JACKED. IM PUSHING ALL IN LFGGGG
Thanks Damien. Logic prevails.
Been watching for a while but the editing, messaging and print of this video was particularly good. Cheers!
That was a great video on many levels 👏🏼 thank you !
This video is probably one of the best you’ve done!
Great video, good analysis and very well put together. Subscribed
This is a great summation. I’ve always struggled to get my head around the concept of ‘worry because it is at an all-time high’. There is no ‘final’ high because we don’t have an end point.
Good research 🎉
Thanks for this. It was a great video.
Very sensible! Love the high jumper - that'll stick 😊
You're an amazing storyteller. Don't ever change.
Thank you!
loved the way this video was done! very entertaining!
Top video, loved the clips going to share this immediately
Thank you so much for sharing
God I love your video editing. Do you do it all yourself or do you have an editor to help?
There’s just something about an 80s throwback that makes you fall in love, brilliant content dude.
Fantastic video, very well done. Loved the bit at the end, but great concept executed flawlessly.
I'm really jealous!
When I hesitate to invest during an “all time high” market I ask myself the question “would I sell my ETFs during all time high to wait for prices to crash?” The answer is always no , which means I should invest regardless of what the market is doing.
Damo its 11pm, ive just watched the end montage and im now pumped.
Cheers
HAHA! i am sorry.
That RBC research @4:00 isn't wrong, but it's a bit misleading imho. When you adjust for inflation (ie, measure prices in real terms), the SP500 was in drawdown for nearly 20 years between 1970 and 1990. It took two decades to get back to your starting point, even after reinvesting all dividends. 2000-2010 was also brutal. And their chart also doesn't rule out periods of long, drawn-out, sideways movement which aren't uncommon. As equity investors, we earn an excess return because there's a non-zero chance we might never get our money back. Too many people don't understand this.
Exactly. The 'time in the market' advice is likely correct much of the time, but not where markets are in bubble territory like they may be now. It's not just at all time highs, but an extended bull run with narrow leadership, with a high Shiller PE ratio. After 2000 many lost everything - the SP500 lost 50% and took a decade to recover, the Nasdaq lost 75% and took 15 years to recover. Just dumping money into the market without assessing the situation is unwise.
@@atomicfly777 the shiller PE has signalled the S&P is overvalued for a long while now. In the mean time the market has delivered insane results.
@@DamienTalksMoney which led to shiller PE being even higher today. Chance investors are worried about potential buble. But as Keynes once said "Markets can remain irrational longer than you can remain solvent".
I think each undecided investor should seek the answer to this question: Investing at all time highs with infalted P/E or sitting on the sidelines with cash, which of these approaches is more risky for my future expected returns?
Answering this question correctly will lead to making correct decision. But the correct decision is not the guarantee of good outcome in investing.
@@pistopit7142 RN u get 5% annual sitting in TBIL with barely no risk.
If you want to lumpsum right now. by thinking market will remain irrational. and snp500 will double up from this ATH and we will get another 10 years bullrun after 14years of bullrun..
this is very less likely. and more likely you will sit on a loss 5 years / 10 years recovery.
people who buy on crash(fear) and sell on peaks always win at the end.
Sit on TBIL.
Federal reserve will drop rate only when shit will hit the fan so the market correction will be there.. they just need a catalyst to turn the sentiment. 2001 was dot cum bubble.
2024-2025 is the IA BUBBLE.
I think it was Branson who once said 'If you can't explain something on the back of an envelope, it's rubbish' and this video encapsulates that perfectly, Damo.
Your ability to take fairly complex information and deliver it in a understandable, sympathetic and well-edited way is reason why after a number of years I still watch (and invest!)
Keep up the great work mate - it's much appreciated.
Fabulous vid. Great editing, speech, logic, graphics. Fantastic!
Very good and valid points as always! The dollar cost averaging in shall continue 📈
Great video, last few have been less interesting to me but this one hit the nail on the head🎉
One of the best videos I've seen on this specific topic
What a fantastic vdeo! Thanks!
Excellent video Damien, thank you 👏
Another great one, all time high also give larger div payments…
Very interesting and informative video thanks. My only criticism is that it was too short!
I watched this yesterday but came back to watch it again today. This is probably the single best video you have made. Brilliant!
Same I’m watching again haha
Probably the best finance related video I've seen in recent memory. Thank you.
Thanks Damien, really interesting video. What was the tetris documentary called??
What a well crafted story you've made here.
Brilliant video thanks a lot 👍🏻
Great analogy!
Thank you!
I love the retro vibe, an interesting comparison using sports and stocks. Analogies are rife with holes but I really enjoyed this vid
I just keep buying regardless of whats happening in the market. I wont start withdrawing any of it for the next 10 years earliest so it happy to ride out the highs and the lows.
(If you have the funds)
Best thing is to lump sum a large amount into your ISA beginning of each tax year, then DCA rest of the year to mitigate crash risks.
What is DCA?
@@eus9 Dollar Cost Average. Pound Cost Average would be more accurate for UK though.
I love this channel, keep up the good content! 🎉
Thank you
Great video, I’m convinced now 😊
I'm glad you pronounced Nike correctly
This is possibly the best put together episode you have ever done from production point of view. Story telling goes long way and with the frame you applied to is great and will be remembered.
Of course, all data and insight you brought in as always is great!
Well done and thank you for the episode!
Quality video and analogy Damo!
Yes.
Great vid!
Excellent, professional video. Thanks for your effort
Not only, that excellent, well structured video, but a real eye-opener: very few videos let you sit down and let you to think…
Outstanding piece of work! What a video, my friend! I got goosebumps! Excelent work!!!
You are very good. The perfect blend of entertaining and informative.
Thank you very much
Hi Damien, do you have an opinion on the BRIC currency/ countries and how this may affect future markets/index funds?
Everything about this video was top notch. Great writing and analogies!
Thank you
Really good data.
I got unreasonably emotional watching that montage at the end. Great video and great timing for me personally, as the question had been on my mind.
Amazing, this is the video I needed to see! Time to re-up my Vanguard account!
Excellent video
Very pertinent for me this one. Started investing again recently and hold mainly VUSA. Made a lump sum deposit and have been drip feeding it into VUSA while the remainder earns daily interest on T212. Going to continue with that approach for now.
fascinating insight into the markets, thank you Damien!
Love these videos. Thanks, Damien!
Your videos are well researched and excellent!
Thank you!
Enjoyed the subliminal Truss reference in the outro music 😂 Great storytelling as usual 👍
Great video as always. Surprised you didn’t mention dollar cost averaging as a way to reduce high/low entry point concerns?
Your videos are like a beacon of light amongst the negativity that helps drive clicks. Thank you.
This may be your best video yet, you keep raising the bar! Cheers
This is really good video, thank you!
Thank you Tim!
Brilliant video!
Great Video!
love the video with the music at the end shes a maniac
Superb video. I learn so much when I watch your content, it’s inspiring thank you for the peep talk. 🗣️
You are bang on the money!! Thank you so much for this video!!The timing is perfect!! I'm in a similar position to you atm with ETFs and i'm new to investing.
Also, I love your comical comparisons and the graphs and charts!!!
Thanks again, easy to understand and useful!!
Brilliant update 🙌🏼🙌🏼🙌🏼
Great video, great editing and very informative. Amazing, keep up the fantastic work!
Absolutely banging video Damian!
Great analogy with the pole-vault, keep up the cracking content
Will do mate thank you for taking the time to comment
Very inspiring Damo.
Only recently started my journey. Obviously had doubts and been cautious, but rational thinking such as this have convinced me it’s the right thing to be doing, so thank you for that.
Buy and hold buy and hold. Or world is going to total shit and nobodies money is worth anything. In either case life is very interesting!
Great vid my man. Top notch.
I just love your content! Thanks for sharing this positively inspiring, confidence affirming video! Your amazing, keep crushing it 🙏👍
Another absolutely superb vid Damo 👏🏆
Really enjoyed this one!
As for me, I'm all in through thick and thin! I think the S&P is just getting warmed up. 10 years ago it was around the 2000 mark!
damn! that montage at the end. epic
Double thumbs up for this one Damo.
i didn't know Bubka had gone to the darskside 😥
Fantastic video. Loving this style Damien!
Great video nice editing 🎉
Great video, as a regular investor to global ETFs it is a timely reminder not to try predict or change course due to the markets running hot and just stick to the long term plan.
This video certainly helped!
Great video 👏🏼
Thank you!
The content has been great recently mate, long time subscriber - mate of Will’s - I’ve dipped in and out but the vids I’ve watched recently have been so well thought out and well put together. Good stuff👏🏼
Yes!
Every year or month or even week things are at an all time high. How else would the market otherwise grow over time: it grows bigger (peak) then previously
Buy buy buy. Hold hold hold
Great vid and info Damien, well analysed, I had just been thinking on this with QQQ funds!!!...gonna stay in now, thanks
Amazing story telling