Ryan
Feb 26th, 2009
Feb 26th, 2009
If You Market Time or Don’t Market Time, What Time is it Now?
I’m not a fan of market timing, but of course, when the stock market has been pummeled the way its been recently it’s easy to become one. Still, market timing has its flaws, including knowing when to buy back in.
Currently, the stock market is more than 50% off of its all time highs, as measured by the S&P 500 index. It’s been one big downer for well over a year, so the question is:
Is it time to buy stocks?
Let’s consider that question. If you’re a market timer, you’re looking for a bargain, so would 50% off be a discount enough? My guess is yes (but I thought that several times before too).
If you’re not a market timer, then it’s always a good time to buy.
If you are one, is a 50% discount enough? Maybe it is. I hope so, anyway.
Hey Ryan! Hard to beat a 50% discount, especially if you are investing for the long term. I have 25 years until retirement so the current “stock discount” is going to make me a lot of money in the future when the economy and market recover. (And it will!!)
Hi Kyle, long time no type!
Well, apparently it’s not enough of a discount as the market is sliding further! In the short term, that doesn’t thrill me, but I’ve got quite some time to go…
I hope this teaches some folks a bit about asset allocation looking forward–but of course, every time something like this happens we hear so many stories about people who were in retirement with 80% of their money in stocks ::sigh::
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