Skip to main content
Message Font: Serif | Sans-Serif
 
No. of Recommendations: 5
I know this down market is painful but if you have a time horizon of 5+ years isn't this a good thing. The p/e multiples of the best high tech companies in March 2000 were obviously unsustainable (well okay, obvious now). But if you're buying for the long term, aren't he "discounts" on CSCO, BRCM, EMC, INTC, NT, etc. (fill-in your favorite tech stock here) a great thing. If you don't think these companies are going out of business, they will more than likely be stronger and more dominant when the economy turns up.

Obviously it's hard to buy when there is blood in the streets and yes, the market may have further to fall. But this is a buying opportunity on the way down if you sensibly dollar cost average. That way you don't risk too much on finding a bottom and you won't miss the upswing. Please correct me if I'm wrong.
Print the post Back To Top
No. of Recommendations: 1
I liked your post so I thought I'd reply. I too am a LTBH investor and I think that the next 1-2 years are gonna be tough but if we keep buying shares of our favorite stocks every month we'll be better for it in the years to come. I really believe that most of the people on these boards are not LTBH investors so don't be surprised if you don't get a lot of support. There are a few and I value their opinions, but for most people it seems like LT is 6 months. I'm too poor to have a short term view :-)
Rodent
Print the post Back To Top
No. of Recommendations: 0
But this is a buying opportunity on the way down if you sensibly dollar cost average.

Exactly. And if you dollar cost average into an index, you don't want the dang thing to go up until the year before you have to sell.

Not easy emotionally, of course, until you've been through it a few times, and even then... But thinking rationally, dollar cost averagers prefer down markets, or dolphin markets (that only occasionally come up for air).

Another thought: Where's the money going? More money flowed into mutual funds in January than the year before. The logical answer is that mutual fund managers are long on cash and bonds. Sooner or later that money has got to go back into play in stocks. But right now IMHO they're playing the greater fool in reverse game, not wanting to get back in until they see that another penguin took the plunge without become shark meat.
Print the post Back To Top