Reply to Do markets only care about "natural language"?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous]I think you don’t know what “natural language” means.[/quote]

but back to OP's question -I believe there are so many more people participating in the stock market compared to a decade before. There have been folks who pulled money out in April, or even earlier so they invest when there is a dip. If many people buy the dip, then the dip is very shortlasted. Also, I feel there are many more buy and hold folks. Early in my career, I did a lot of trading selling and buying (mostly in 401k but also in brokerage) based on the market news. Now, I just shrug when market goes down and do nothing. My auto investments in brokerage just happen on the same schedule. I just don't check my portfolio value on the days when market is down significantly. I wait till the market highs (or near highs) to check my networth. It works for me.

My unpopular opinion is that S&P is the safest investment (inflation adjusted) out there as long as you hold  for long time. We are still 6 years from retirement, when we get closer we will build a cash reserve for 1-2 years, so we dont have to sell stocks for our living expenses when the market is down. Otherwise for the next 5 years, I welcome all dips as buying opportunties! [/quote]

Completely agree. My approach is the same. Most of my investments is in S&P funds and I keep contributing into them on monthly schedules. Spare cash goes into a separate pile and whenever there is a dip, I move some of it into the funds. I am 20 years from retirement and the goal is to have at least two years of cash for living so I won't need to tap into the investments if circumstances are down, allowing me to ride out any bear markets. I also plan to always have two years worth of living expenses sitting in cash at any time during retirement, withdrawing from the funds to keep this pile going as I spend it. The rest of the investments will continue to grow (hopefully) untouched. [/quote]

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