No. of Recommendations: 1
>> But $10,000 in the S&P 500 at the end of 2002 became $14,000 at the end of 2004.

That's a 40% gain in two years.

Heh, but $10,000 in the S&P 500 at the end of 1999 was still only worth $8250 at the end of 2004.

I'm not saying that one should be jumping in and out of the market each year. I'm saying that broad trends have occured in the past. It's likely they will do so in the future. There HAVE been DECADES where the market (indexes) returned less than 3%. And those decades occurred when the P/E ratio was as high as it now.

I'll get back in the market over the next couple of years... Probably too fast, but one thing is true.. I won't know when the next bull market will start, so it's best that we're full invested.

FYI - there has never been a bear market that only lasted two years... There are rallies inside a bear market however...

Of course, there's also drops during a bull market... so the question is... will the market head back up past it's old peak? Or will it falter from the current rally and continue heading down...

See, I just can't dump it all in the market today... because history points to us being in a bear market.. and if I did dump it in, THAT would be market timing...

So I'll go slow... If the market drops, I'll get in cheaper.. If it goes up, I'll have a little in to enjoy some of the gains.

Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.