Investing

Early 2020 - are we in a stock market bubble ?

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  • Feb 27th, 2020 1:03 pm
[OP]
Jr. Member
May 10, 2010
147 posts
86 upvotes

Early 2020 - are we in a stock market bubble ?

Greetings,

Relative newbie here. I have been contributing like clockwork a fixed cash amount on each payday to my QT account since August.
Then manually purchasing VDY in the days following, most of the time. Sometimes delaying or even skipping a purchase, then purchase double next payday.

Seems to me unit price has been increasing like crazy since the low of this summer. Much more than underlying economy should bring (as perceived).
Tomorrow I will have 3x my normal VDY purchase amount in my QT cash account, wondering if I should keep delaying purchase while VDY is so high...

Those buy on (small) dips have been good to me so far, in my short VDY experience. I know, nobody can time the market. But I will be in accumulation phase for several years, just picking better moments for my regular purchases...

Indexes have been rising like crazy in the last months. I am under impression it is not fundamentals that drive the market at this point, but plain speculation.
Do you think we are in a bubble, on a verge of a correction ? (as I am in accumulation phase in a high dividend yield ETF, I would love a market correction)

Cheers.
48 replies
Deal Addict
User avatar
Feb 1, 2012
1288 posts
1642 upvotes
Thunder Bay, ON
Maybe.
I solemnly swear, to never assume I have an inkling at which direction the market will head, and to never make any investments based on a timing strategy.
Jr. Member
Dec 1, 2019
128 posts
108 upvotes
There is as yet insufficient data for a meaningful answer.
Deal Addict
Oct 1, 2006
2066 posts
1586 upvotes
Montreal
Maybe. I do not know, neither do I care.
Member
Sep 18, 2016
285 posts
233 upvotes
where is my glasbowl ?
Index Investors, the Vegans of the Investing Industry
Member
Jan 14, 2012
382 posts
100 upvotes
Oshawa
rudyrednose wrote:
Indexes have been rising like crazy in the last months. I am under impression it is not fundamentals that drive the market at this point, but plain speculation.
Do you think we are in a bubble, on a verge of a correction ? (as I am in accumulation phase in a high dividend yield ETF, I would love a market correction)

Cheers.
Noone really knows. It could go up or it could go down. Maybe keep buying and set some limits. Sell 25% at a certain price point, if it falls more 25%, and so on. Dont get too greedy. Profit is profit.
Deal Addict
Jul 27, 2017
2180 posts
933 upvotes
OP its anyones guess, it's an unknown what will happen next week, next mth, 12, 24 mths from now.

so you could ride the wave the way that you've been doing with VDY with an ACB thats as close to where the price was 12 mths ago at $33 vs $37 today or maybe have a built in cushion that could weather a drop of x% to say $30

or as the previous poster mentioned sell off some when you get a certain percentage gain.
Deal Addict
Nov 9, 2013
3724 posts
3293 upvotes
Edmonton, AB
People have been asking this question as long as people have been investing in markets.

In recent times, I've read many suggest since at least 2014 that we are "due" for a recession or that equities are overpriced. And yet, here we are.
Keep calm and go long

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