Anybody Buying Yet? Where’s the Bottom?

[Nick87]

Dollar cost averaging. It's basically, keep adding to your positions, with every pay period. When stocks are down, you get more shares, less when they are higher.

More or less what we try to do. Didn't know there was a term for it.

 

[SAJ-99]

I promise all of you that you were far more responsible about building a retirement than most. The median retiree is retiring with $410,000 saved. Do the math. It is pretty clear that person isn't retired at all. Maybe 100% stocks on a hope and a prayer (and a lot of ramen noodles) is the median person's retirement strategy.

 

[Flatrock]

Sure, but 1) you should reduce stocks holding as you age and 2) if you know the person that sees a recession coming please introduce me.

1. Yes I agree but that's a different issue. Reducing risk as you age vs. reducing stock exposure because of current negative events are 2 different things.
2. I agree it's tough but that's THE big thing that a person should be watching for. Otherwise just have an appropriate stock and bond mix, rebalance through the years and ride out the bad times.

 

[Bonasababy]

One of Warren Buffet's tenets is that the best time to buy, is when everyone else is heading for the exits, easier said than done.

Warren can afford to have cash sitting their waiting...most of us cant...or at least shouldn't have more than a few years of expenses in it.

 

[406dn]

Warren can afford to have cash sitting their waiting...most of us cant...or at least shouldn't have more than a few years of expenses in it.

No one puts more importance on maximizing their ROI than Buffet.

His point is that having some cash readily available for investing can pay big. My best example is some years old now. Target had reported disappointing earnings. Their stock dropped 17% that day. I did not think that a drop that large was rational. The next day I purchased a thousand shares @ $53ish/share. Roughly three years later, I sold it at $175/share.

I wish all of my moves paid as well.

 

[BuzzH]

I promise all of you that you were far more responsible about building a retirement than most. The median retiree is retiring with $410,000 saved. Do the math. It is pretty clear that person isn't retired at all. Maybe 100% stocks on a hope and a prayer (and a lot of ramen noodles) is the median person's retirement strategy.

I think there's a really high percentage that the only retirement advice I would give them is:

1. Bet it all on black a half dozen times.
2. Go buy XXX dollars worth of lottery tickets.

About the only way they can retire.

 

[Exhausted]

We got some big money ballers in this thread . . .