If you are still 10+ years away from retirement and you don't need the extra money right now, then YES, you should be buying no matter what the market is doing short term. If the market drops a LOT, then if you can, you should buy even MORE.When the Dow was at 14,100 in October 2007 and started to drop, there were news stories about how it would be maybe 15 years before the Dow got back to there (and they were calling it "back to even"). Well, that's just BS. I have one non-retirement mutual fund that I no longer add money to...I just let it sit there and grow. The value in that fund is greater today (by a LOT) than it was when the Dow was at 14,100, simply due to reinvested dividends.In the funds I did contribute to, I'm VERY glad today that I bought all the way. I made regular purchases at Dow 12,000, 11,000, 10,000, all the way down to 6,400. When the Dow hits 14,100 again (and it will), then every single purchase I made between October 2007 and then will have been UNDER what will be the current value. When you add in dividends and compounding, it's a no brainer. Removing a huge portion of risk by staying diversified and continuing to buy, and the rewards are always there on the other side of a market dip.
the idiocy continues wrote:
Flagpole wrote:1) No way am I telling people to sell. Just because I say the market will drop is not telling them to sell. That should actually be a BUY signal (unless close to or in retirement) as the market will come back eventually. I tell people to maintain their investment strategy (as long as it involved regular contributions that are unwavering) no matter what happens short term to the market.
I love it!
The market is due for a big drop and we're taking that as a BUY signal now for the express reason that the market will return to the price you paid now eventually.
FINANCIAL GENIUS!!!