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The Market Will Crash Again. Are You Ready?
- the__alchemist 6y agoThis is a generic financial news article that provides no value or insights, beyond "Don't invest emotionally". "Rather than investing based on emotion, intuition, or pure luck, someone who dollar-cost averages invests at pre-planned times." What times? Timing the market is notoriously difficult, without inside information. "If you had dollar-cost averaged your investment approach back in March, you might not have invested exactly at the bottom, but you would have invested throughout the correction. Even if you had bought an index that tracked the S&P 500 at the worst time to buy in March (well before the market hit bottom), you would still be sitting on returns of more than 13%!" How would you know where the bottom is? It's unclear what this comment is suggesting. The author could have picked an arbitrary time, and compared returns to another point in time, and have conveyed the same info. "Semi-frequent drops in the market make great buying opportunities; however they are just that -- opportunities to buy more of the companies you love." This is almost implying that when the market drops more than avg in a given time, it'll go back up to its level soon... But is devoid of an actionable prediction or specifics (Rate of drop, timeframes etc), presumably because it's a generic, unfalsifiable statement. "If you are convinced there is going to be a stock market crash.." What would be a good justification to be convinced?