The time has come to buy more units during this ‘’sale’’

original1

Unit price on downwards trend

Section62

original1 said:

The time has come to buy more units during this ‘’sale’’

Unit price on downwards trend

Do you think we've seen the worst of the Ukraine/Russia crisis yet?

One of the risks of 'timing' is thinking the worst is already past.

shortseller09

Section62 said:

original1 said:

The time has come to buy more units during this ‘’sale’’

Unit price on downwards trend

Do you think we've seen the worst of the Ukraine/Russia crisis yet?

One of the risks of 'timing' is thinking the worst is already past.

That's not the only risk. US growth stocks 'seem' to have moved from a 'buy the dip' mentality to 'sell the rally' due to interest rate and valuation concerns. If this continues, it pulls down most markets with it.

dunstonh

A crash is 20%.  The major crashes are 40%.     We are currently down around 10%.   Buying today is better than buying in December but it may only be early days into a decline.    Also, not all declines happen quickly.  There were three negative years in a row just over 20 years ago.

Thrugelmir

A fall over 10% is deemed to be a correction. Not in bargain territory yet.  

While units maybe on a downward trend. Some companies have performed extremely well. What really matters is your underlying asset allocation. 

MEM62

I have a little headroom left in my ISA this side of April which I will top up at some point.  Might leave it a few more weeks though.  I make monthly contributions to my share ISA but, if I have any spare, will usually put something extra in if there is a drop.    

original1

Further drops in Vanguard LifeStrategy 100 % Equity fund.

Buying the dip. 

What is buying the dip? The term 'buying the dip' refers to the practice of buying a stock or other asset after it has declined in value, hopefully with some research that indicates it is likely to rise again following the dip

GeoffTF

"Don't buy the dip":

https://www.youtube.com/watch?v=UvkqIDE9itg

k6chris

GeoffTF said:

"Don't buy the dip":

https://www.youtube.com/watch?v=UvkqIDE9itg

Good video, though it focuses on a continuous drip feed over 30 years.  Many people on this forum seem to have a large pot of cash waiting to go back in, and certainly now is 10-20% better than a few months ago.  Perhaps drip feed that in over the next few months.  Guessing how low the market will go is impossible.

AJ61

k6chris said:

  Guessing how low the market will go is impossible.

Guessing is easy, geting it right is the real challenge!

coastline

k6chris said:

GeoffTF said:

"Don't buy the dip":

https://www.youtube.com/watch?v=UvkqIDE9itg

Good video, though it focuses on a continuous drip feed over 30 years.  Many people on this forum seem to have a large pot of cash waiting to go back in, and certainly now is 10-20% better than a few months ago.  Perhaps drip feed that in over the next few months.  Guessing how low the market will go is impossible.

Video is summed up in the early minutes. Waiting to buy at a set percentage below the recent high won't work. It might go up 100% before it falls 20% and it could be years away. Buy the dip is just a general term for buying after any sell off. Many ways to do it but most people just simply drip feed monthly or add money when available.
I use charts and lower indicators for buying and selling and yes nothing works all of the time. There's certainly a link with indicators such as RSI and Full Stochastic shown on the chart. Could even top up at a moving average such as 50 day although we are way below that now.

$SPX | SharpChart | StockCharts.com

On another thread in July last year I highlighted that all indicators were on the top in all timeframes. That's doesn't happen often . Here's the weekly chart today which shows lower indicators near the bottom of the range . Look at RSI and Stochastic. Market of course is lower and generally a good time to buy when the weekly is oversold. Again it doesn't happen that often.

$SPX | SharpChart | StockCharts.com

Here's the monthly chart in July last year. All indicators on the top so long term overbought.

usa+m+jun30.png (640×614) (bp.blogspot.com)

Today they are moving lower. What happens next who knows as monthly indicators don't play out that often. If they do then the market will have crashed.

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