Unnerved By Surging Markets? Try Value Averaging
by andrew hallam · Published · Updated
With the U.S. market continuing to hit new highs, many investors are wondering whether it’s a case of too much too soon.
During the past 10 months, the S&P 500 has risen nearly 24 per cent, including dividends. Vanguard’s MSCI Canadian stock ETF hasn’t kept pace, but it’s up 14 per cent since June.
If fast market rises make you nervous, you might consider a “value averaging” investment strategy. It ensures that you invest more money when markets are in a funk and less when markets are rising. The strategy has a long track record of success, and has worked marvelously over the past five years with the Canadian, U.S., International, and Emerging Stock Market indexes.
It doesn’t involve speculative decision-making either.
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- Andrew Hallam Jul 24, 4:40 AM
David, Don't invest less than $3000 in a single ETF. Invest in the global stock index first. When you save up more money, add an...
- Andrew Hallam Jul 24, 4:38 AM
David, Here's what you could do: 40% Australian bond index 20% Australian stock index 40% Global stock index: https://www.blackrock.com/au/individual/products/283117/ishares-core-msci-world-all-cap-etf-fund The global stock index is split...
- Andrew Hallam Jul 24, 4:34 AM
Joseph, As I outlined in this article, the currency with which your ETFs are listed makes no difference. Andrew
- Andrew Hallam Jul 24, 4:32 AM
Hi Charlie, There's a very important rule of thumb: Buy insurance for investing purposes. Buy investments for investment purposes. Never mix the two, or you...
- Andrew Hallam Jul 24, 4:28 AM
Nicollette, You won't have online access to the UK exchange with DBS Vickers. Instead, if you want to use a local brokerage, you could use...
- Nicollette Jul 24, 3:26 AM
Hi Andrew As a British expat in Singapore, would you recommend I use DBS Vickers or TD Direct international? What are the pros and cons...
- Charlie Jul 23, 11:00 PM
Hello Andrew, Firstly thank you for this very informative blog and for flushing out the hidden charges when investing with Zurich. I'm also very concerned...
- Joseph Jul 23, 6:39 PM
Hi Andrew What would be the currency you suggest opening an account in if I'm British, but work in Indonesia, am paid in Indonesian Rupiah...
- David in Vietnam Jul 23, 9:16 AM
Hi Andrew, I am about to invest for the first time in my newly created Saxo Trader account, and so was hoping to use the...
- Andrew Hallam Jul 23, 7:15 AM
Hi Ian, Thirty year returns would be similar. But consider the currency with which you will pay your future bills. If I were going to...
- Anthony Passalacqua Jul 23, 3:17 AM
Hey Andrew, Wow!!! What an awesome seminar at TPT! My name is Anthony! I went to all of your seminars in Orlando and sat in...
- Ian Wallace Jul 22, 11:36 PM
Also, do you recommend government or corporate bonds? Don't think I saw that mentioned in the book.
- Ian Wallace Jul 22, 11:33 PM
Thank you. I've decided to go with 3 funds...CLU, CIE, and a bond fund...I'm thinking about VIE (Canadian short term), but am wondering if I...
- Andrew Hallam Jul 22, 11:26 PM
Ian, As mentioned in the book, I recommend that you invest using the TSX. If you go with the U.S. exchange, your heirs will pay...
- Eldon Nesbitt Jul 22, 11:22 PM
For parents of young children the take home from the Forbes' and Kiplingers' tables is that being enthusiastic about STEM activities can pay dividends.
- Ian Wallace Jul 22, 10:58 PM
Hi Andrew. I just finished your latest book and learned a great deal. I am a Canadian living in Zimbabwe, and I have no intention...
- Andrew Hallam Jul 22, 6:29 PM
Emelyn, Keep investing in your e-Series funds. They are superb. Cheers, Andrew
- Andrew Hallam Jul 22, 6:27 PM
Emelyn, If you are a resident of Canada, and I assume that you are, then you cannot invest in U.S. based platforms––not even a TD...
- Ganeshwara Herawan Hananda Jul 22, 3:56 PM
I think they are going to introduce a minimum fee of around $10 (on whatever currencies that you are trading on) starting from August: https://www.sc.com/sg/personal-banking/investment/online-trading/fees-and-services/
- Emelyn Jul 22, 9:35 AM
Hello Andrew, Have you heard of Thinkorswim by TD In the US? We are attending a seminar by Phil Town this weekend about Rule 1...
- Zori Jul 22, 6:43 AM
Andrew, I am Mexican/Russian living in Colombia currently. I have an account with TD Ameritrade but concern about estate tax and would like to optimize...
- Nita Wagner Jul 21, 11:47 PM
Sounds like John is away with the fairies....
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