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Follower ○○○

With the Dow 1300 points down, is it a good time to get into the market?

With the DOW 1300 points down, is it a good time to get into the market, or is the fall going to be deeper?

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Participant ○○○

Re: With the Dow 1300 points down, is it a good time to get into the market?

Well, if you find the answer to this billion dollar question, please post it here. No one knows what it's going to do but if your time frame in greater than 3 months or so, I would load up.

With all the stimulus money and Fed buying all kinds of things, the markets have nowhere to go but up. Think what Fed said yesterday: They aren't even THINKING of THINKING to raise rates for another 2 years. That's an incredible statement after S&P *almost* went positive and Nasdaq at all time highs... What does this tell you?  Stocks are the way to go and bonds are pretty much a big NO touch.

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Frequent Contributor

Re: With the Dow 1300 points down, is it a good time to get into the market?


@Frank888 wrote:

With the DOW 1300 points down, is it a good time to get into the market, or is the fall going to be deeper?


 

 The time to invest in the market is when you have funds available. Attempting to time entry and exit usually subtracts value from your portfolio.

veni vidi vici vti
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Participant ○○○

Re: With the Dow 1300 points down, is it a good time to get into the market?

Well....I will pick up the pieces by adding monies to funds I already am invested in.

Gabe

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Frequent Contributor

Re: With the Dow 1300 points down, is it a good time to get into the market?

       


@Frank888 wrote:

With the DOW 1300 points down, is it a good time to get into the market, or is the fall going to be deeper

       All your available cash should have been in already. So we’ll assume it’s new money. I don’t think most people would bet the farm on what they “think” will happen in the future. That being said invest a little each day all the way down and maybe back up. Eventually markets usually settle at bottoms and tops. This is still an overreaction again as economic news unfolds in my opinion which is typical of markets.

        The Fed is being cautious giving the economy 2.5 years to show signs of normalcy. A who knows statement. Jobs are permanently lost every recession as new kinds of jobs are produced. So back to school or vocational classes. Nothing new there.

         Whenever there’s a swoon like this you have to ask where the money is going. Probably to a MM fund earning zip at this time. Let’s assume an investors personal inflation rate is around 2.5% like mine. So how long before I have to seek higher returns? Answers vary but money will have to be placed somewhere at some point into some alternative investment. 

          Answering the question anytime you get an unusual market drop like now or two months ago that is a market sale. Will the product you bought today for 5% off be 10% off next week? That remains forever unknown. But market returns beat bank returns with greater risk long term.

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Frequent Contributor

Re: With the Dow 1300 points down, is it a good time to get into the market?

I’ve had a “buy list”, and I’ll be placing some limit orders tonight (when home from work). My feeling all along was we recovered too quickly, now the “Market” is beginning to realize we are NOT through with the Pandemic, probably still in the “second inning”. I agree with the others, invest regularly according to your own risk tolerance/ asset allocation.

Win
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Frequent Contributor

Re: With the Dow 1300 points down, is it a good time to get into the market?


@youth wrote:

Well....I will pick up the pieces by adding monies to funds I already am invested in.

Gabe


Thank goodness we are all saved. I'm buying with my last pennies.

Capital
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Follower ○○○

Re: With the Dow 1300 points down, is it a good time to get into the market?

I agree, i think is a good strategy to invest regularly.

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Frequent Contributor

Re: With the Dow 1300 points down, is it a good time to get into the market?


@Win1177 wrote:

I’ve had a “buy list”, and I’ll be placing some limit orders tonight (when home from work). My feeling all along was we recovered too quickly, now the “Market” is beginning to realize we are NOT through with the Pandemic, probably still in the “second inning”. I agree with the others, invest regularly according to your own risk tolerance/ asset allocation.


         Your guess is as good as any. I just think we’re in “extra“ innings. As you open the economy new cases should be expected and health care professionals are better prepared. It will be around long after everyone moves on like the plague and small pox. 

          Youth - that’s the attitude.

          Capital - tapped out here but fantasizing. Looks like the train may be stopping in Petticoat Junction tonight. 🥳 

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Participant ○○○

Re: With the Dow 1300 points down, is it a good time to get into the market?


@Capital wrote:

@youth wrote:

Well....I will pick up the pieces by adding monies to funds I already am invested in.

Gabe


Thank goodness we are all saved. I'm buying with my last pennies.


Best save those pennies!  It might take "forever" to get back to even.  

Gabe

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Participant ○○○

Re: With the Dow 1300 points down, is it a good time to get into the market?

For us not yet. We're right where we want to be.

We bought 29% more stock on Mar 31. 35/65 to 45/55. On Fri the market took us to 50/50. Today at 48/62.

We will rebalance to 50/50 if we are at less than 45/55 or more than 55/45 in Jan. 

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Frequent Contributor

Re: With the Dow 1300 points down, is it a good time to get into the market?


@Capital wrote:

@youth wrote:

Well....I will pick up the pieces by adding monies to funds I already am invested in.

Gabe


Thank goodness we are all saved. I'm buying with my last pennies.


I always put in a few pennies on dips.

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Frequent Contributor

Re: With the Dow 1300 points down, is it a good time to get into the market?


@Win1177 wrote:

I’ve had a “buy list”, and I’ll be placing some limit orders tonight (when home from work). My feeling all along was we recovered too quickly, now the “Market” is beginning to realize we are NOT through with the Pandemic, probably still in the “second inning”. I agree with the others, invest regularly according to your own risk tolerance/ asset allocation.


Market down next week, buy a little, and get paid by Christmas.

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Contributor ○○○

Re: With the Dow 1300 points down, is it a good time to get into the market?

I agree we recovered too fast. 

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Participant ○○○

Re: With the Dow 1300 points down, is it a good time to get into the market?

Did the market "overshoot"?

Gabe

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Frequent Contributor

Re: With the Dow 1300 points down, is it a good time to get into the market?


@Frank888 wrote:

With the DOW 1300 points down, is it a good time to get into the market, or is the fall going to be deeper?


Since the Dow fell 1,861 points by the close, the answers—at the time the questions were asked—were obviously “no” and “yes”.

As for this morning ....

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Frequent Contributor

Re: With the Dow 1300 points down, is it a good time to get into the market?


@Win1177 wrote:

I’ve had a “buy list”, and I’ll be placing some limit orders tonight (when home from work). My feeling all along was we recovered too quickly, now the “Market” is beginning to realize we are NOT through with the Pandemic, probably still in the “second inning”. I agree with the others, invest regularly according to your own risk tolerance/ asset allocation.


Active investors are likely taking their time with cash on hand before they jump into the unknown. It appears the passive investor on these forums appear to be fully invested and except what the markets offer. I understand my financial situation and risk tolerance and am, and have been, very willing to make adjustments to my portfolios when needed. The past 6-8 months have been trying, but I'm in a better situation now than I would have been if I had stayed the course...….granted, I've been helped by not drawing additional $$$ from my IRA when we were allowed to discontinue RMD for the year.

Best to all.

Out

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Contributor ○○○

Re: With the Dow 1300 points down, is it a good time to get into the market?

Are you already in and want to add? How old are you? Invest regularly and don't worry about the level of the market with a long time horizon.


@Frank888 wrote:

With the DOW 1300 points down, is it a good time to get into the market, or is the fall going to be deeper?


 

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Frequent Contributor

Re: With the Dow 1300 points down, is it a good time to get into the market?

Stand pat, as usual.  

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Participant ○

Re: With the Dow 1300 points down, is it a good time to get into the market?

You are going to get conflicting views to your question because it involves the issue of timing. Timing is notoriously difficult to do because of what is termed the 'random walk', which says a stock's price will move in a random fashion so is not determined by the previous days moves. Prices could just as easily go down as up. However, there are investors who believe searching for shares that are priced at or below their intrinsic value is the only way to go as it hedges against volatility and gives you better long term growth prospects. Warren Buffet is one of those investors. There is no doubt that on a fundamental level share prices generally remain over-bought (expensive). By entering the market at elevated levels and during a very long bull cycle it seems counter-intuitive to invest. I personally would not invest in this market. However, if you are going to invest now one suggestion might be to dollar-cost-average into it. By committing a fixed amount, say $1,000 a month, into buying the 'market' (well-diversified) such as an S&P 500 fund, you hedge your bets. You might like to consider a mutual fund (managed) over an ETF (passive) since volatility will continue throughout this year. This method of investing over the long haul will mean you smooth out the bumps, both up and down, but win out eventually.

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