Quote:
Originally Posted by CaptainYooh
Definitely not, if you think the market is going into recession. And that is a very popular sentiment these days if you listen to stock commentators and portfolio managers on TV.
In general, I just love this "time to buy" notion. Yeah, if you are sitting on oodles cash to invest and if you are confident about these investments being profitable, then maybe. Most retail investors have portfolios of stocks, bonds and a relatively small amount of cash that needs to be there as a buffer. And if the stocks in those portfolios are down, the "time to buy" advice is not that useful.
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Well the other side of the coin is that people who can’t stomach this now aren’t going I want to buy back in when/if things go lower. Almost no one is going to invest at the bottom.
Truthfully, if you invested $100 at the peak in the S&P 500 in 2007 and did nothing, it’s worth about $230 at this point. You had some painful times in there, and probably wanted to sell at least a few times, but doing nothing was the best plan.