Timing a unit trust investment
Timing a unit trust investment
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Discussion

Gordon Brown

Original Poster:

11,838 posts

265 months

Monday 5th November 2007
quotequote all

I am now sat like a coiled spring waiting to see what the markets are going to do before I invest a good chunk of the companies retained profits in a range of investments in the UK, EU and US markets. Given that these market have fallen 1% today I wonder if there might be more falls before we get good news, strong enough to feed a bit of a rally?

I obviously want to buy at the bottom! Any clues as to whether I should buy now or leave it a few weeks?

Given the problems in Pakistan and the suggestion that unemploymnet in the US is feared to trigger a recession, slowing in the Uk service sector, the suggestion that UK interests will remain steady and perhaps fall over rthe next few months, blah, blah, blah I am just confused.


LeTim

13,014 posts

228 months

Tuesday 6th November 2007
quotequote all
Probably best to use a 'pound cost averaging' approach then, feed the money into the funds a little at a time, say a weekly contriubution.

We may be in for a recession, and some turbulance, but that doesn't necissarily mean that the FTSE for example will fall, infact stock markets have tended to rise during consumer recessions.

dcb

6,069 posts

295 months

Tuesday 6th November 2007
quotequote all
Gordon Brown said:
I obviously want to buy at the bottom! Any clues as to whether I should buy now or leave it a few weeks?
If you are buying a unit trust, the timing won't
make much difference.

The spread on the buy / sell prices will see to that
- spreads of 5% are common.

Suggest split your wedge into ten, and feed each
tenth in once a month.

After ten months, you will have got some averaging,
and in that time you will have some idea
how your UT is going.


Gordon Brown

Original Poster:

11,838 posts

265 months

Wednesday 7th November 2007
quotequote all
Thanks folks. Mesage seems to be slowly slowly catchy monkey.