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Is cost averaging the way to go at this stage?

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  • MaxiRobriguez
    MaxiRobriguez Posts: 1,790 Forumite
    Seventh Anniversary 1,000 Posts Name Dropper
    Buying dips isn't dumb but making a dip be 30% rather than 5% is because you'll simply be waiting for a long time to put your money to work.

    The way I see it is that markets are stretched currently and are lofty due to cheap money, buybakcks and TINA rather than solid fundamentals, so it's entirely sensible someone not just ploughing more dumb money into equities...

    ... But there needs to be a strategy if there's cash waiting on the sidelines, given that cheap money and TINA doesn't seem to be going away so markets are unlikely to dip lots, but there will be increased volatility so buying a 5% dip regularly is going to be an opportunity that a 30% dip is not.
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