This report with Americans for Financial Reform is an urgent warning: it details how the money pouring into AI could spiral into an economy-wide crisis and lays out recommendations for policymakers on how to keep an AI crash from devastating ordinary people’s finances.
Buying a dip is still trying to time the market. If you have a view then you implement it, if you have no view then you’d probably dollar cost average into broad indices. I think you can look at your personal stake, what you can afford to lose with your horizon, and then make any necessary changes to limit the downside. Like you say, you might need to give up some possible gains.
I what I mean by timing the market is reallocating based on what I think may happen. Simply increasing contributions (if I can) when the market craters might technically be timing it, but differently than what I mean.
Actually buying the dip is timing the market, not trying to. You really can’t go wrong with that. It becomes an issue when you don’t invest because you’re waiting for the dip.
Buying a dip is still trying to time the market. If you have a view then you implement it, if you have no view then you’d probably dollar cost average into broad indices. I think you can look at your personal stake, what you can afford to lose with your horizon, and then make any necessary changes to limit the downside. Like you say, you might need to give up some possible gains.
I what I mean by timing the market is reallocating based on what I think may happen. Simply increasing contributions (if I can) when the market craters might technically be timing it, but differently than what I mean.
Actually buying the dip is timing the market, not trying to. You really can’t go wrong with that. It becomes an issue when you don’t invest because you’re waiting for the dip.
@DarkDarkHouse Take care of the downside and the upside will take care of itself.