DCA into a down trend /bear /unknow market? Is like catching fallen knives! JUST DONT! When there is blood in the streets -even then don't buy yet! Wait for a reason/catalyst to go clean up the streets. Then you get back in ...
Trust me - I lived, traded through the 90"s, dot.com and GFC, 2020 Covid dip ! We are so early into this recession, there is not even blood in the streets, as yet.
The Nasdaq-100 is up +145% since the ATH in the 2000 dotcom bubble. Even if you bought the pico-top of the market, you've 2.5x'd your money in 23 years. In the grand-scheme of things, that's not to shabby at all.
DCA'ing during that dotcom collapse was arguably one of the most generational buying opportunities ever, so I'd strongly disagree with your premise. I was gladly DCA'ing during the COVID crash, in 2022, and I will gladly DCA this year. Take NVDA for example... if you DCA'd from $250 down to $125, you're up on EVERY.SINGLE.PURCHASE. Shares are currently at $277, giving anyone who DCA'd the opportunity to take risk off the table and have some vacation money. We don't know what's around the corner, but we do know that the market has a habit of going up over the long-run for those who are patient and brave enough to step in during unfavorable periods in the short-run.
"We don't know what's around the corner, but we do know that the market has a habit of going up over the long-run for those who are patient and brave enough to step in during unfavorable periods in the short-run." On this we agree!
As an investor, my clients will kill me if i DCA into a bear market, DCA into a bull market is a different story!!
DCA into a down trend /bear /unknow market? Is like catching fallen knives! JUST DONT! When there is blood in the streets -even then don't buy yet! Wait for a reason/catalyst to go clean up the streets. Then you get back in ...
Trust me - I lived, traded through the 90"s, dot.com and GFC, 2020 Covid dip ! We are so early into this recession, there is not even blood in the streets, as yet.
Just be patient, sit in cash!
The Nasdaq-100 is up +145% since the ATH in the 2000 dotcom bubble. Even if you bought the pico-top of the market, you've 2.5x'd your money in 23 years. In the grand-scheme of things, that's not to shabby at all.
DCA'ing during that dotcom collapse was arguably one of the most generational buying opportunities ever, so I'd strongly disagree with your premise. I was gladly DCA'ing during the COVID crash, in 2022, and I will gladly DCA this year. Take NVDA for example... if you DCA'd from $250 down to $125, you're up on EVERY.SINGLE.PURCHASE. Shares are currently at $277, giving anyone who DCA'd the opportunity to take risk off the table and have some vacation money. We don't know what's around the corner, but we do know that the market has a habit of going up over the long-run for those who are patient and brave enough to step in during unfavorable periods in the short-run.
Thank you for your reply !!
"We don't know what's around the corner, but we do know that the market has a habit of going up over the long-run for those who are patient and brave enough to step in during unfavorable periods in the short-run." On this we agree!
As an investor, my clients will kill me if i DCA into a bear market, DCA into a bull market is a different story!!
Appreciate your work!!
“Bull markets ignore bad news, and any good news is reason for a further rally” 🎯
--- Michael Platt