re: #192 fern01

I’ve never been able to pick the top/bottom of the market - and doubt the words of those who always manage to do that - so I won’t buy during a fall - but wait for a sustained rise after the event. e.g. After the 2008 crash I didn’t buy anything until 2011 - so I didn’t buy in at the bottom but I did buy way below the 2007 top.

My guestimate is the DOW will probably drop to c 20K before this is done, so I’m on the sidelines. I also won’t sell what I have - it will recover eventually - as happened in Obama times. Will probably need a change of US government for full recovery - hope that happens soon.

I miss Obama

Dollar cost averaging is about not trying to time the market at all. The idea is that you invest regularly (once a month or three months or whatever) instead of doing large purchases and attempting to time things. Some of what you buy will be bought when the market is close to the top. Some of what you buy will be bought when the market is close to the floor. Overall, the concept is that you end up averaging it out and can invest without feeling like you need to hold off because of timing.

This advice mostly applies to buying, though.