08-21-2014, 04:52 PM
(08-21-2014, 04:42 PM)Slowlife Wrote: I've struggled with this for the better part of this year. I pick a stock I like and a price I like it at. Then that stock reaches that price, I don't buy because I fear it will keep dropping, then the price goes up. And continues to go up and up and up and then fear I missed my chance. Logically, I know I can't time the market and I'm not making any money not being invested. I also know long term high quality companies will come back. Emotionally, I fear buying now and missing a better buying opportunity later. I need to invest logically, not emotionally, but that's easier said than done.
Currently all the stocks I like are at prices higher than I want to pay. I'm sitting on about 25% cash, which I also don't like. At most I like to sit on 10% cash. Maybe 20 if I'm close to making a buy. Now I'm on the verge of making an emotional buy just because I feel like I need to buy something. I'm literally driving myself nuts trying to figure out what to do.
I've come to the conclusion that I'm not going to wait for a market correction, but I can't figure out if I should buy at current prices or keep waiting on the sidelines.
Are you planning on continuing to make investments over the next 5, 10, 20 years? If so, I think you are over-thinking things.
Its time in the market, not timing the market that makes you money over the long term, especially with dividend growth investing. Now I'm not saying to ignore valuations and blindly buy the market, but I feel there are plenty of stocks out there trading at or below fair value.
If you buy and the price drops significantly next month, then just add to your position and thank the market for the higher yields for dividend re-investments on your portfolio.