Market Fluctuations

[Northern Investor]

Hi everyone. Just another quick question here:

My wife and I joined NISA early in 2024 during the highest point in the TOPIX and SP500 indexes ever. I know dollar cost averaging is supposed to insolate you from the ups and downs, but the markets seems to turning the other way now, and part of me is sweating a little because our funds are turning negative, yet another part of me wants to add a ton of money while it's going down. Feels like buying on the down swing is a deal. A third part of me feels that indexes have always grown in the long term, until, that is, I starting investing in them . Any advice, articles or words that might assuage my fears in this topic?

Also, wonderful work you are doing here at Retire Japan! Keep up the amazing effort!

[RetireJapan]

If you add to your investments regularly it should smooth out some of the volatility. But holding a diversified index for the long term should deliver reasonable returns. Try not to check the price of your holdings much, it doesn't help and will only make you unhappy.

[sutebayashi]

My wife and I joined NISA early in 2024 during the highest point in the TOPIX and SP500 indexes ever. I know dollar cost averaging is supposed to insolate you from the ups and downs, but the markets seems to turning the other way now, and part of me is sweating a little because our funds are turning negative, yet another part of me wants to add a ton of money while it's going down.

Focus on that latter feeling.

You are never going to buy everything at the best price.
So if the markets come down further, it means you are going to be buying at much better prices in future. Buying at better prices is how you will really make hay in the longer term.

A third part of me feels that indexes have always grown in the long term, until, that is, I starting investing in them . Any advice, articles or words that might assuage my fears in this topic?

What you do has virtually zero bearing on the markets you invest in, even if it feels like it’s rigged against you when you see you have “lost” a little money.

I have my son investing in these things too from this year. 1,000 yen a month I think.

He’s possibly down a candy bar at this stage… but this is going to show him that (5-10 years from now) it works out fine.

[adamu]

Topical post from Ermine recently:

https://simplelivingsomerset.wordpress. ... ain-sight/

And in case that got you down, there's always the classic:

https://jlcollinsnh.com/2012/04/15/stoc ... -save-you/

[Northern Investor]

Thanks everyone. That actually does make me feel a lot better. I think going forward, I will continue my strategy. I'm currently invested in three funds, an SP500, a TOPIX fund and a world fund and I will just tsumitate it until I see an opportunity to add some lump sum. My goal is to max this thing in 10 years. I won't sweat the small stuff.

[beanhead]

3 or 4 months is too short a time period to make any judgments. Keep plugging away for a few years. If things go according to plan, you will see nice positive numbers on your account then.

[Deep Blue]

If you have a (minimum) ten year time frame, stick your lump sum in now rather than waiting for a pullback. It’s statistically a better option to get your money in early.