Does anyone here invest in the stock market?

[BlasterBates]

The stock market is fairly high. To get the 10% you need to invest over time. If you would have invested regularly in the FTSE over the last 10 years you would have done quite well, because there were two crashes where you would have doubled your investiment. It´s a no brainer to stick loads on after a crash. That´s really where you make your money.

Most new investors start when the market is fairly high then it crashes then many make the mistake of either selling or just sit tight and after 10 years they haven´t made anything. Much better is to invest your money evenly every year and hold back for the big crash. I would advise aiming at least be able to double your portfolio after it has dropped 50%, at least as a new investor. It´s also psychologically good to know you can do this, because instead of being a disaster it becomes a major opportunity. In other words the the frustration of the crash is balanced out by the excitement of being able to make a load of money.

Stock market crashes are like earthquakes they will happen, but you don´t know when and the longer you go on without one the more likely it´s going to occur and the bigger it´s going to be.

Make sure you have a good dividend yield. I would say currently aim for about 3%, you could actually do better than that at the moment say 4-5%, but you want companies which are going to grow so there is usually a trade off. Dividends are pretty immune to crashes and is an important part of your return.

[lukemg]

Just finished reading 'a random walk down wall street' and 'the four pillars of investing'
Have both given me a lot to think about and explain a lot of the mistakes I have made investing over the years.
But on the good side I have always held my nerve during the downturns and that has always paid back well when they have recovered.
As the others say - invest regularly, monthly say and if possible automatically. (I haven't done this till recently and regret it)
CHEAP Index funds should cover the core and some diversification overseas will help.
Stuff is now spread across HYP of individual stocks (loving those divis rolling in), index funds and some, but less in mutual funds even though these have done well for me and compared with FTSE etc
Watch your costs, initial and annual, use a discount broker (HL for example) and above all - HOLD YOUR NERVE when you get a kickdown in the market. Research says people almost always get the timing wrong and panic sell.

[SimonMac]

Just finished reading 'a random walk down wall street' and 'the four pillars of investing'
Have both given me a lot to think about and explain a lot of the mistakes I have made investing over the years.
But on the good side I have always held my nerve during the downturns and that has always paid back well when they have recovered.
As the others say - invest regularly, monthly say and if possible automatically. (I haven't done this till recently and regret it)
CHEAP Index funds should cover the core and some diversification overseas will help.
Stuff is now spread across HYP of individual stocks (loving those divis rolling in), index funds and some, but less in mutual funds even though these have done well for me and compared with FTSE etc
Watch your costs, initial and annual, use a discount broker (HL for example) and above all - HOLD YOUR NERVE when you get a kickdown in the market. Research says people almost always get the timing wrong and panic sell.

Not done it on purpose, but I have it at the moment that I have at least one dividend payment each month

[ChimpMaster]

I would garner that the market has risen too much too quick recently and there are rumblings of a correction coming. Insider sales are at very high levels, indicating a bearish undertone to the market, which really is not that surprising given that many have been in stocks over the past 4 years and see this as a great time to book profits.

[SimonMac]

Everything would suggest you are right, but unless you are a short term investor looking for quick gains you'd be daft to panic sell, if you are an income investor it makes difference what the share price is as you will always baseline your dividend yield against the purchase price rather than the sell price you would get now for a share.

[lukemg]

YOU CANT TIME THE MARKET. No-one can do it consistently and dont fool yourself if you get one call right.
Trust me - get 'a random walk down wall street' he gives all the star fund managers, market timers, Technical Analysis wonks etc a kicking and then shows you how to do it.
He does admit that the main problem is that his approach is boring and doesn't need maintenance, which can be very addictive when you get started.
Thats why I am blending approaches.

[badger7579]

The only book on investing you'll ever need.

http://www.amazon.co.uk/Intelligent-...271781-8652824

[SimonMac]

To be honest, investing is like dieting, everyone has there one strategy to beat everyone else, but it comes down to common sense, do your homework yourself and don't get too cocky

[DimPrawn]

+1

Aviva, Rio Tinto, Vodafone, Glaxo, Diageo, all long term solid investments paying around 5% dividends each year, add in the value gains too and you can't lose in the long term*

I have a few speculative punts, bought Lloyds at 33p a share, now sitting ~53p a share, no dividends yet but will start to eventually pay when its paid off HMG

*10 years +

Well your Aviva is down 12% in one day and they have slashed the dividend.

https://www.google.co.uk/finance?client=ob&q=LON:AV

[sasguru]

You short termists will never get rich with your febrile approach to investing.