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I just want to offer everyone a professional piece of advice. Large down moves in equity markets is exactly when you should buy equities because that's when ex
by vasilipupkin 11y ago
I just want to offer everyone a professional piece of advice. Large down moves in equity markets is exactly when you should buy equities because that's when expected returns are at their highest.
- swagswag 11y agoLarge down moves Thursday, Friday, and now (early) today.
- debacle 11y agoI'll counter with some amateur advice - things still seem historically overpriced.
- vasilipupkin 11y agostocks are not obviously cheap, I'll give you that. But you have to compare them to other investment alternatives. Cash, Real Estate, Govt Bonds.
- adt2bt 11y agoThis got me thinking - is it possible to develop a profitable long-term investment strategy that takes advantage of stock market dips? For example, say I have $1000 to invest every month. I'll take that $1000 and put $500 into an index fund and $500 into a savings account. Then, once the market dips 10% from its previous high, all the accumulated money in the savings accounts is invested over 4 weeks. I made a simple google doc to back-test the strategy 5 years on the DJIA. It's very rudimentary, but I'd love to see if anyone tries a different approach. https://docs.google.com/spreadsheets/d/18-2rBonJPPlg8n6YkpAjAXBKX-Arf5_bByO1ETZf8bY/edit?usp=sharing https://docs.google.com/spreadsheets/d/18-2rBonJPPlg8n6YkpAj...