Ghost of Igloi wrote:
seattle prattle wrote:
If it happens, i sell on the way down, making a profit since i've seen years of appreciation. The person who buys also may see a profit, eventually, having bought in at a reduced price especially if they have a long time horizon in their plan.
May or may not happen to you. I would ask how you fared from 2000 through 2011? In the end investors cannot avoid the downturn since each share must be owned by someone. You seem to not get that point.
what you don't seem to get is the big picture. You keep cherry picking segments of the market which suit your arguement. Tomorrow's downturn is the foundation for the next upswing. Look at market history. Yes, downturns happen and savy investors use them to build their positions.
Few sell at the top and few buy at the bottom. We miss the perfect entry points and perfect exit points, but if in the market long enough, some gains are possible, even for those that buy (or sell) on a downturn. So you are right that someone must be buying on a downturn, but you are wrong if you think that means they are a loser.