Punk Rooster wrote:Having decided I may wish to tie up some money (un-defined period), is now the "right" time to invest in the ASX?
The company I'm looking at invests broadly across the ASX, hence I believe it would reflect the overall state of the ASX- is this somewhat correct?
Appreciate any feedback, or alternate options....
It's looking like a far better time to invest than mid to late 2007 when the market was starting to get a little ahead of itself. Given prices have dropped 11% or so this year, it's looking like a reasonable time to start assessing companies in some industries.
As has been noted above, I would be a little wary of financials due to the jitters being experienced by any company that makes an announcement with the word 'credit' in it.
There are a number of great quality Listed Investment Companies (LIC's) that as you say invest broadly accross the ASX. Argo & Australian Foundation Investment Company are two of the biggest, but there at least 4-5 others with decent track records. The only thing to consider with these companies at the moment is they will still have a large holding in the financial sector.
If you are interested in learning more, I'd highly recomment a book called 'The Intelligent Investor' by Benjamin Graham. It's an old book, but has had numerouse revisions and additions and is prefaced by Warren Buffet. Benjamin Graham taught Warrne Buffet the principles which have helped him build up net wealth of over $56 BILLION USD. It's fair to say, that this guy knows what he's talking about and the book will make you change they way you look at the stock market forever.
Finally, if you do go to an investment advisor, remember that NOBODY and I mean NOT ONE PERSON IN THE HISTORY OF THE STOCKMARKET can predict the future. The market is an irrational beast which can make you stinking rich and desperately poor overnight and it's swings and roundabouts cannot be accurately predicted by ANYBODY.