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Old 08-16-2007, 01:52 PM   #24
nmhen
Everybody's favourite Wild fan!
 
Join Date: Oct 2005
Location: New York
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Quote:
Originally Posted by albertGQ View Post
Hey, so I'm thinking of purchasing the RBC Canadian Equity Fund. Since the TSX is dropping so much today, there has to be a market correction. You guys think this would be a wise investment?

https://www1.royalbank.com/cgi-bin/r...Equity%20Fund&
Without knowing anything about that particular fund, there are some other variables that should go into your decision.

*What's your goal for that investment?
*Is it for retirement?
*How long until retirement?
*Is it for a quick profit?
*Do you have other equity investments right now?
*Do you have other fixed income investments right now?
*Do you have other real estate investments right now?
*If the value of that investment went down x-amount (5%? 10%? More??) would you feel you had to sell it just so it didn't go down more or would you be comfortable?
*Of the money you'd invest in it, could you see yourself tapping it for ANY reason before your "goal" was reached? If your car died, if your roof fell in, if you got sick?

The same investment, at the same price, may be "good" for one person and "bad" for another person. But my ten years in the industry has taught me that trying to time the market for a quick profit is a good way to get your butt handed to you sooner or later.

The flip side of that is that if you're just starting out with investing, and your time horizon is long-term, then you're much better off starting when prices are down than when they're up. I talk to investment professionals all day long in my job. It never ceases to amaze me how many of them toss the old maxim of "buy low, sell high" right out the window as soon as the market goes down.
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