Investor pessimism will see to it that stock prices keep falling at least for a little while. Whether or not the markets will be lurching into bear territory soon is another matter entirely. While most investors are thinking of dumping their stocks and holding cash this is the perfect time especially for younger people to buy some stocks. No matter how long it takes the markets will eventually recover and when they do . . .
Yeah, I'd say buy in a little each payday - whatever you can afford to invest. Keeping at least a little cash set aside is a good idea. You can also use an asset allocation strategy to hopefully blunt volatility - some money in bonds, gold, real estate, perhaps a short index position ETF, etc.
Thanks for this thread. This was precisely what I was thinking, and having some cash left over from my winter jobs I was thinking of investing rather than having them lie around. I am thinking of putting in a small amount initially though, just so that I don't lose a lot of money. This seems to be the perfect time for me to get into stock market investing.
I also think that the drop in the stock market will do good for investors in the long run especially if the stocks skyrocket to their highest once they recover. This is why I feel that I should add more on a constant basis especially now that the market is still down. I'm planning on adding little by little each month.
Yes is my answer to the thread's title. When the stock prices are in the doldrums, I guess that's a good time to invest particularly on the blue chips. When the market is down, those selling are the desperate ones so if you are a good speculator, you can make a smart estimate if the price will still go down on the next day. If not then it is the time to buy for the next day it may stabilize a bit and after a week it will be a steady increase. Truly, the stock market is one big pond of speculations.
Stocks went up because the Fed was adding money... stocks go down because they stopped... good or bad, it is what it is...
Yes, in general if you are still building up your portfolio then these dips are great buying opportunities. This applies to a long term investing strategy though, we could be going a lot lower in the short term. So plan according to your own needs.
Lower stock prices are always a good idea if you plan to hold on to the stock long term I think. In fact one of the best ways to take advantage of this is through a good mutual fund or even a total market fund. I think stocks are very similar to real estate in this way, most of the time price dips are very good for people intending to hold on to their investment for 5-10+ years.
