What happens if the dip keeps on dipping?
When the market falls, no one knows: 1. How big the fall with be. 2. How long the fall will last. 3. When the market will bounce back.
This is exactly why I don't personally 'buy the dip'. Long story short, because it's impossible to time the best time to invest. Which is why only investing when the market ‘dips’ is a losing strategy over the long term.
The much better strategy - in my opinion - is the following two steps:
1. Stay invested
At all times. After all, I don’t need this money for the long term. And it’s impossible to time the right moments to buy and sell.
2. Keep investing
‘Cost averaging’ by investing every single month. No matter what.
I do this personally by primarily investing into low cost global index funds and ETFs. No need to overcomplicate your investing strategy.
Then let time and compound interest grow your wealth
Listen to the episode for the full details.
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⚠️ Disclaimers: I am not a financial advisor and this does not represent financial advice, it is for entertainment purposes only. Please seek professional advice to get the best information for your personal situation. When investing, your capital is at risk and you may get back less than invested. Past performance does not guarantee future results.
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