3D·

Single payment ETF

Greetings,

I know, I know. "time in the market beats timing in the market"...

However, I am somehow a friend of making "large" one-off payments into my ETF when I have some money left over (5000-8000€)...

Do you assume that the price will continue to fall or is this probably just a small setback? :)

4 Comments

CoinEsel@DonkeyInvestor

Small setback 👍

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Kevin E.@KevinE

We are not 3% below our all-time high. No one can say how things will look at the end of the year. In 2018, the market slumped quite a bit around Christmas (S&P e.g. from 2,800 to 2,400 points within a few weeks).

If you feel more comfortable with a 1k savings plan, go for it. If you can cope with a 20% drop, go straight in.

(Provided your investment period is long enough).

Valuing markets is extremely difficult. Of course, you can say that the average P/E ratio is currently very high - I myself am now investing much more cautiously.

However, there were already voices at the beginning of the year that saw the market as too hot.
For example, the "Börsen-Zeitung" headlined "A correction threatens the S&P500". Stupid that it has since risen from 4,900 to 5,870 points in 10 months. If you had stood on the sidelines, you would have missed out on a return of just under 20%.

I think market timing is necessary for individual shares, but very difficult for ETFs. However, after two very strong stock market years, one should not necessarily expect high returns in the coming years.

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Show answer

FamilyFinance@FamilyFinance

It also depends on how much you already have in it. If the 6-8k is a lot compared to the size of the deposit, then go in in tranches. If it's rather small, then all at once. It wouldn't have much of an effect anyway.

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