If people are selling into this decline, part is desperation and part is due to some more certainty about expected economic growth than before. The lucky ones are those who will still have cash when it's over. Buy late sell early.
I have been professionally involved in debt and equity capital markets for over 30 years, and find this thread mildly amusing. I love you guys on audio matters but even a lot of knowledge is a dangerous thing when it comes to market timing. Expect to lose some money before you become "The New Market Wizards". Good luck!
Market timing is a fools game. You will never catch the top, or bottom, correctly. However, there are periods when a dip can be taken advantage of, if you have a time horizon longer than 6mo-1 year. For instance, does anyone think oil will remain at $40 in 3 years? What an opportunity to periodically buy into energy right now, as long as you don;t need the money before year end. Same thing for the current equity market dip. Next year is an election year and the market generally does well then, plus the economy is better now than it was a year ago. So this dip could be bought into for a return over the next year.
It is fun to try and predict the numbers though, even though it is more like putting a finger in the air than making a prediction based on any kind of fundamental facts.
I added to my positions on Friday also. … All in all, I am happy I bought in on Friday and think that's going to be a reasonable profit by year end.
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