Simple Q&A - Stock market investing

[fools_gold]

There's a lot of overlap. I don't have the exact figure but eMaxis Slim All Country is over 60% US stocks.

[Hárbarðr]

Thanks, and yes, so it seems. 68%
I think if I would go about investing in one of the emaxis, and diversify, I should chose something else than two emaxis funds.

Another Q!
The market being rather high now, should I hold off a bit to invest (a lump sum that is)?!

Thanks

[fools_gold]

The eMaxis Slim All Country is already very diversified. Adding other funds like the S&P500 won't give you more diversification. It would just duplicate your US holdings and make you overweight US stocks. Some people like to overweight US stocks though.

Generally it's thought to be better to invest a lump sum rather than invest it over a period of time. However, there's nothing wrong with investing bit by bit if you are more comfortable with that.

[Hárbarðr]

Thanks for that answer.
Yes I thought so too.
I want to go lump sum once, but I also will get my iDeco account soon.
The lump sum is for NOW. And here is yet another "million dollar" question.
Is the market too high now to invest with a lump sum????

Thank you again

[fools_gold]

This article explains it well.

On average lump sum investing beats dollar cost averaging. When valuations are high (like at the moment) it's not so clear cut. Lump sum investing wins out, but there is also a higher chance of larger losses. Therefore it's best to do whichever you feel most comfortable with.

[Hárbarðr]

great read thank you.
Since I will be starting my iDeco account soon, and than invest monthly, I think for now, the lump sum is best kept in my bank. The market is high. But than again, looking at the S&P 500 throughout the times, it has only been going up, with a few downs..

So I could wait for a dip, and make a bit more money, or just start now, and still in the long run make money....

Hummmmm....

[Kanto]

great read thank you.
Since I will be starting my iDeco account soon, and than invest monthly, I think for now, the lump sum is best kept in my bank. The market is high. But than again, looking at the S&P 500 throughout the times, it has only been going up, with a few downs..

So I could wait for a dip, and make a bit more money, or just start now, and still in the long run make money....

Hummmmm....

This is very relevant.

http://www.smartretirement.com.au/wp-co ... raging.pdf

The data says do not wait.

[fools_gold]

great read thank you.
Since I will be starting my iDeco account soon, and than invest monthly, I think for now, the lump sum is best kept in my bank. The market is high. But than again, looking at the S&P 500 throughout the times, it has only been going up, with a few downs..

So I could wait for a dip, and make a bit more money, or just start now, and still in the long run make money....

Hummmmm....

Waiting for a dip isn't usually a good idea. The market could go up a lot more before it correct. On the other hand it could drop like a stone tomorrow. We just don't know.

Statistically it's better just to invest your lump sum. This is still true when the CAPE ratio is very high (like at the moment). However at these valuations there is also a risk of that you may have larger losses than you would with DCA. (On the other hand, there is less potential upside with DCA). If the risk worries you then DCA may be the safer option. Otherwise lump sum.

[RetireJapan]

would investing in emaxis S&P 500 and emaxis ALL COUNTRY be more or less the same thing? Should I decide on one rather than going 50?50 on those to funds?

US makes up about 60% of the All-Country fund, so not quite the same.

[TokyoWart]

would investing in emaxis S&P 500 and emaxis ALL COUNTRY be more or less the same thing? Should I decide on one rather than going 50?50 on those to funds?

As others posted the US makes up a little under 60% of ALL COUNTRY and on top of that the S&P 500 only covers around 80% of the total US market cap.