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It Was a Fine Week For Stocks (For Me)

This article was written by in Investing. 5 comments.


ChartAfter 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.

Published or updated May 12, 2006. If you enjoyed this article, subscribe to the RSS feed or receive daily emails. Follow @ConsumerismComm on Twitter and visit our Facebook page for more updates.

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About the author

Luke Landes, also known as Flexo, is the founder of Consumerism Commentary. He has been blogging and writing for the internet since 1995 and has been building online communities since 1991. Find out more about him and follow Luke Landes on Twitter. View all articles by .

{ 5 comments… read them below or add one }

avatar My Fiancial Journey

Word – damn stocks keep going up, bad for us youngsters trying to buy stocks for our retirement. Go recession ;-)

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avatar Luke Landes ♦127,470 (Platinum)

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.

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avatar kurt

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.

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avatar Luke Landes ♦127,470 (Platinum)

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.

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avatar F. D. Bryant III

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.

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