'Buy the Dip' Faith Has a Last Bastion: Individual Investors

[mahatmakanejeeves]

You'll never guess what I did yesterday.

Heard on the Street: Individual investors are the only ones keeping the ‘buy the dip’ faith alive. But even their appetite for losses may have limits.

wsj.com
‘Buy the Dip’ Faith Has a Last Bastion: Individual Investors
They remain big net buyers of stocks as professional money managers sell, but the scale of losses such investors are racking up could eventually lead them to

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[Tomconroy]

1. Dollar cost averaging over 40 years worked for me. Bought

a number of dips. It always paid off in the long term.
Stocks are the only thing people don't want when they are on sale. They only want them when they are sold way above list price.

[progree]

2. I did. I exchanged 14.5% of my liquid net worth from bonds to equity

Last edited Thu Jun 23, 2022, 02:38 PM - Edit history (2)

I made the decision after the S&P 500 fell into a bear market (more than 20% down from its Jan 3 all-time high). Yes, it's likely to go down further, may easily be years before it recovers fully, but so far the history has been that it always does. So I'm getting a 20% discount. I could have been greedy and waited for it to go lower (and missed out entirely), or wait until it appears upward bound instead (certainly not the current outlook), but decided to go for the 20% discount while it was there.

I've looked at the length of recovery from peak to when it reaches the peak again, those have been posted here. The recovery time from 20% below the peak to when it reaches that point again is almost certainly a lot shorter, so I'm not sweating "recovery time".

https://www.democraticunderground.com/111693448#post3