The average correction for the S&P 500 since World War II lasts four months and sees equities slide 13 percent before bottoming, if it is a bear markets average a loss of 30.4 percent and last 13 months
So if you are expecting to buy on crisis, I will wait for market to correct about 20%( definition of bear market), wait for a further 3months( after bear market, market takes time to build confidence, sideway trend).
Then I will buy 50% of my warchest, I will then add in 30% then 20% over next 6 months. The 30% and 20% could be higher in price then the 50% entry price.
What I will not do is to average down. Based on history,keep in mind stock market down up over time due to inflation. Hope it help :) :)
The average correction for the S&P 500 since World War II lasts four months and sees equities slide 13 percent before bottoming if it is a bear markets average a loss of 30.4 percent and lasts 13 months; it takes stocks nearly 22 months.
So if you are expecting to buy on the crisis, I will wait for the market to correct about 20%( definition of a bear market), wait for a further 3months( after a bear market, the market takes time to build confidence, sideway trend).
Then I will buy 50% of my war chest, I will then add in 30% then 20% over the next 6 months. 30% and 20% could be higher in price than the 50% entry price.
What I will not do is to average down. Based on history, keep in mind the stock market down up over time due to inflation. Hope it help :) :)
The average correction for the S&P 500 since World War II lasts four months and sees equities slide 13 percent before bottoming, if it is a bear markets average a loss of 30.4 percent and last 13 months
So if you are expecting to buy on crisis, I will wait for market to correct about 20%( definition of bear market), wait for a further 3months( after bear market, market takes time to build confidence, sideway trend).
Then I will buy 50% of my warchest, I will then add in 30% then 20% over next 6 months. The 30% and 20% could be higher in price then the 50% entry price.
What I will not do is to average down. Based on history,keep in mind stock market down up over time due to inflation. Hope it help :) :)
The average correction for the S&P 500 since World War II lasts four months and sees equities slide 13 percent before bottoming if it is a bear markets average a loss of 30.4 percent and lasts 13 months; it takes stocks nearly 22 months.
So if you are expecting to buy on the crisis, I will wait for the market to correct about 20%( definition of a bear market), wait for a further 3months( after a bear market, the market takes time to build confidence, sideway trend).
Then I will buy 50% of my war chest, I will then add in 30% then 20% over the next 6 months. 30% and 20% could be higher in price than the 50% entry price.
What I will not do is to average down. Based on history, keep in mind the stock market down up over time due to inflation. Hope it help :) :)