"wait for the next slump in property, but you might be waiting a very long time."
Market-timing is generally a losing strategy. As the legendary John Bogle once remarked, 'the best time to buy a good asset, is when you have the funds to do so'.
Apart from the fact that the market may not come back to your price, value is a moving target. For instance if you defer buying a house for 5 years, you need to consider the value of 5 years' rent which you could have saved.
Its no different in the stockmarket. Not happy to pay $25 for BHP, you wait for $23
Several bad things can happen :
1) BHP never falls to $23 again 2) Every 12 months you wait for $23, BHP adds $3 to its value by virtue of its annual profit. You are actually fighting a losing battle, because BHP's value *will* increase, but its price *may* decrease. Bad odds.
ASX Price at posting:
0.0¢ Sentiment: Buy Disclosure: Not Held
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