Warning: This post is just a quick rant about the market 🙂 This is not a detailed analysis of the market financials/valuations.
As a long term investor, I shouldn’t (and now don’t) try to time the market. That’s a lesson I learnt by waiting in sidelines between 2011 to 2013.
I did not invest as much as I would have liked and was sitting on a lot of cash. I was hoping that the market had gone up a lot and would correct and was waiting to buy in at a lower price. But as we know, the market never took a breather and it is still going strong. I learnt that irrespective of what the market conditions are, I need to find quality companies that are valued reasonably.
But with 5+ years of bull market, it is very difficult to find quality dividend paying companies at a decent valuations. Lot of quality dividend paying companies are at their lifetime highs and relatively expensive now. Even though I have been purchasing stocks recently, I wish I get them at a better valuations. That way, I get more stocks for my capital just making my money work even harder and also a higher YOC.
With the recent Ukraine crisis, Iraq problems, oil prices going up and local problems like prices shooting up, unemployment still not out of the woods etc etc, I was thinking that one (or many) of these factors will lead to a sell off and provide an opportunity. What is puzzling or confusing is that with so many global and local factors in play, the market is still not letting up. Several times in the recent few weeks, the market headed down, but kept bouncing back up. I don’t follow the market throughout the day, but check out Google Finance homepage at the end of the day. And what I have seen a lot these days is the market goes down by 0.5% or 1% during the day, but had always ended up flat or positive.
Lot of people are saying that the market valuations are not as high as previous bull/bubble market and there is still room for the market to go up and maybe they are right. I might be selfish to look forward for a correction, but it is something that is going to happen for sure. It is not a question of if, but a question of when.
Let’s wait and watch 🙂