Lucky C wrote: ↑Fri Mar 06, 2020 5:56 am
@Seppia Out of curiosity I did a little math. In the event of a -50% bear market your always-invested portion will lose 50% and your spare cash will lose 36%. Not saying -50% is likely or not, just wondering how that would play out.
And if markets lose 90%, I'll lose even more!
Volatility is the price of admission. Statistically, drops beyond 30% are VERY rare, and if they happen, as a 70%+ saver, I'll just rejoice thinking about the amazing prosperity that (should) lie ahead.
wolf wrote: ↑Fri Mar 06, 2020 6:02 am
@seppia: I have considered the same tactic to buy, instead of dca-investing during the next few years. So have you already invested the first 1/3 cash buffer?
A little less actually, maybe 25%, including today
Bankai wrote: ↑Fri Mar 06, 2020 6:47 am
Yeah I agree buying now is premature. Risk to reward just doesn't look good at all. Even recent drop is only taking us markets to where they were only 4 months ago so no cheap at all while risk of further big drop is very real.
With the exception of a very brief period at the end of 2018, European equity indexes haven't been this low since the summer of 2017.
For emerging markets, it's early 2017.
I hadn't bought any indexex for months prior to today, and I am certainly not touching the S&P500 for another long while.
There are some good stocks that are cheap now, it was impossible to find bargains a month ago.
Siemens, Disney, Royal Dutch Shell are a couple names that are at least decently priced