After stocks were approaching long-time highs, by the end of the week everything was falling. That’s great news! While I’m still in investing mode, I like to buy when values are down. Part of my paycheck is automatically invested into a 401(k) every other Friday, so perhaps I’ll be getting good prices for my various funds tonight.
I’m hoping that “dollar cost averaging” pays off in the long run.
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5:23 pm (reply)
Word – damn stocks keep going up, bad for us youngsters trying to buy stocks for our retirement. Go recession ;-)
5:54 pm (reply)
On the one hand, I like to see my balances moving up, and on the other, I like the feeling I’m getting “a deal” when I invest.
6:24 pm (reply)
If you believe in an efficient market, which I suspect a lot of people here do, falling stocks are always a bad sign. Your implicit assumption in saying this was a good week for you is that stocks will end up at the same price in the long run as they otherwise would have. A strict application of the efficient market hypothesis says this is hogwash.
Just saying.
Keep up the good work.
6:30 pm (reply)
You may be right, Kurt, and thanks for the well wishes. Unfortunately, we will never know whether a price today affects a price 30 years from now to a high degree of assuredness. Funny things, hypothetical situations.
What I do know is that investing today, I’ll be better off in the long run than I would be had I invested the same amount yesterday when the prices were higher.
I’m not claiming I have a strategy. Today just happened to be payday.
3:44 pm (reply)
No, don’t let stocks go down now. I have a house to buy. After September then they can fall as far as I am concearn.
Heh…..actually I’ll sell out if I have to. Probably should anyway. Still if the market could generate another couple thousand for me before I close it would be nice.
Besides haven’t you heard of sell in May, walk away. That historically if your investing money between Oct-May you make money, and from June to Sept you lose money (or something like that – it on one of Cavuto’s shows, kinda wish I’d paid closer attention.