ChickenCoop's Scraps

Where are you and where are you going?
wolf
Posts: 876
Joined: Fri Jan 06, 2017 5:09 pm
Location: Germany

Re: ChickenCoop's Scraps

Post by wolf » Fri Jul 12, 2019 11:50 pm

I am in a similiar position as you ChickenCoop. I also do hold roughly half of my assets in cash. I have invested in bonds though, but I didn't invest in equities in the last few years. My investment target is about 5 years ahead of me. So I've got the problem how to invest. Recently I thought about investing it via "dollar cost averaging" (DCA). Starting end of the year, I could imagine myself investing all my cash within the next 4 to 5 years via DCA. Why DCA? Because I'm risk-averse, I too see the highly leveraged equity market (see Shiller-PE-ratio), and I wanna minimize the downside risk of "loosing" money. Eventually I found that paper in the internet, which discusses the chances of outperformance of DCA vs. lump-sum-investing in regards to PE-ratios.
http://uncledmoney.com/wp-content/uploa ... A-CFPR.pdf
Maybe you could also gain some perspective on that topic, too, with that paper.

ChickenCoop
Posts: 15
Joined: Thu Jun 21, 2018 3:45 pm
Location: Australia

Re: ChickenCoop's Scraps

Post by ChickenCoop » Thu Aug 01, 2019 8:08 am

@Wolf, Thanks for the link, Yeah, That sits pretty well with me. I'll do something like that.

@Bigato, Ive started reading, but Maybe I've been reading the wrong things. I've been reading Ray Dalio's articles on Market cycles. That is what has me aware of where we are in the current long term business cycle. I'm grateful to have a friend that is a long time value investor(retired share analyst). He sends me info and keeps me patient. I also have a Peter Thornhill book that I've started reading.


July 2019
Assets:

Cash-Emerg Fund -$12,582.
Cash-Kids Future fund -$17,517.
Cash-Investing -$80,676.
Super-$380,135(invested in cash)
Shares-$93,917
Inv Property equity-$363k, $194,599 still owing
Home-$0 (as far as FI assets are concerned)

Total-$947,827.
$5027 increase in July.

Post Reply