And what if the market is in extended, multi-decade, secular Bear market mode with lower highs and lower lows rather than a brief, 3-6 month, corrective retrace with new highs forthcoming shortly thereafter? Your approach is correct if the latter, but devastatingly wrong if the former, given this is an old folk portfolio.
Buying the dip has been so right for so long that it is bound to be the very wrong way to go at some point moving forward. Mind you, I am NOT saying we are at that point here, just saying that at some point over the next year or two, the decline will be slow and relentless, where it will make no sense to buy the dip for 10-15 years, in 85% of stocks.
Sure, the stock market will eventually hit new all time highs, the only problem is that the "old folks" may die first before it does. |
