Compared with the previous low stock index, it has been at a high level recently, and the valuation of some high-quality sectors and stocks is not cheap, so it may not be a good buying point now. If we follow the principle of "high don't buy, low don't sell", it is not appropriate to buy in large quantities in the short term. But in the long run, the stock market should fluctuate upward for a long time, and the funds in hand should be allocated to high-quality funds in order to share the long-term compound interest. So how to avoid risks as much as possible at a relatively high level in the short term, and how to buy? Here are four ways to buy in response to the current market.
I. Fixed investment
This is the simplest way to buy. Fixed investment disperses timing risk through small amount of decentralized buying. Its advantage is that it can participate at any time, from time to time. After the fixed investment is started at a relatively high level, even if the market outlook is facing a decline, the risk is relatively controllable due to the opportunity to buy on dips and lower costs. Generally speaking, there is no need to worry too much about a fixed investment every day. Find a high-quality fund to make a fixed investment and pay attention to it regularly.
Second, fixed investment+bargain-hunting manual single purchase
This is an upgraded version of the fixed investment. On the basis of fixed investment, when the market falls sharply, you can manually buy a larger amount. This method is more efficient than simple fixed investment. For example, there have been some fluctuations in the stock index recently, and there have been several opportunities to make up positions by falling sharply, and the effect is still good. However, this demand of looking at the market every day is suitable for investors who have time to look at the market and have certain analytical ability.
Third, the anchor coverage position.
The first two methods are based on the strategy of fixed investment. If the amount of funds on hand is large, the fixed investment will take a long time, and the effect will not be very good. In this case, the anchoring method can be considered to cover the position.
This method is more suitable for investors with a large amount of funds and can quickly allocate funds. The disadvantage is that some funds are not used efficiently.
We also have a solution to this situation. For example, after buying 40% positions at one time, don't put all the remaining 60% funds in the money fund. There is no need to load all these spare bullets, you can't shoot so many at a time. You can consider preparing 10% of the money fund as a bullet for loading guns. The remaining 50% can go to the absolute return target portfolio and put it in the magazine first. After the first 10% is shot, reload 10% and fire at any time until it is finished.
Fourth, the balance between shares and debts.
The first three are all based on the idea of decentralized buying or covering positions. If you don't have time to watch the disk, or don't want to make up the position, you just want to make a one-time layout. We suggest considering the idea of balancing stock and debt.
I have introduced the stock-debt balance strategy to you many times before, and Graham elaborated it in detail in the book Smart Investors. According to the ratio of 5 shares and 5 bonds, the risk can be effectively hedged, and the yield curve is upward for a long time, which is conducive to the patience of investors.
To sum up, in the current market environment, there are several points to pay attention to when buying and opening positions. One is to find the right person. The above four methods all belong to the tactical level. At the strategic level, it is necessary to optimize the fund and hold it for a long time. you are talking to the wrong person. Everything is in vain. The second is to be patient. There is a stock proverb in stock investment: buy slowly and sell quickly. The same is true of fund investment. When buying, be patient in finding fighters, and consider losing before winning. Stepping on the air is just an opportunity loss, and there is no actual loss, but once it is quilt cover or cut meat, it will cause actual loss. The third is to have confidence in the future and insist on holding it for a long time. Buying is not the ultimate goal. It is suggested to cherish the hard-won share and insist on holding it for a long time.