When the market appears to be fairly valued to overvalued as it seems to be at this point may be a good time to consider changing the settings on brokerage accounts to pay out cash instead of buying more stocks.Rather than thinking about market valuation, it's probably a better idea to think about this option on a case by case basis. The most obvious scenario is if you have a particular stock that you believe to be very overvalued and, for whatever reason, you are reluctant to sell; capital gains tax, for example, then this might be an instance that could make sense. (Though my inclination would be to sell a stock that is demonstratively very overvalued, though greed: the hope that it will become even more overvalued, is sometimes a hard demon to slay.)However, unless you are very lucky and/or very smart, passive dollar cost averaging by reinvesting dividends often makes more sense in the long run, that is, unless you need, or want, the dividend payments for income.kelbon
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