The question is if it's to be better to sit in cash (and have it eaten away by the inflation) waiting for the correction or to invest now and miss the potential upsides if the correction happens.
Let's say by incredible luck you manage to time both of these events perfectly, then what? There will be other crashes in the future, that's a certainty. And you won't be able to time all of them.
I agree that timing the drop is very difficult, but there is going to be a drop for sure - what has been happening in markets recently is definitely not "the new normal"
What this means is that for now the market continues to self correct and we haven't reached peak positive sentiment yet. Historically, massive selloffs happen because of unexpected sudden changes in sentiment (2000, 2008) or due to black swan events (2020). Given that we just went through a black swan and the markets aren't overly optimistic, I wouldn't expect a large crash in the immediate future.
[0] https://ofdollarsanddata.com/why-buying-the-dip-is-a-terribl...
Anybody have any other ideas?
Is that an asset that will hold value? Rust never sleeps.
But what do I know?!
Many are designed to have smaller swings up/down. While they may miss booms and spikes, they draw down less during volatile markets and downturns.
I dont use it but many on internet (and coworkers) use M1 - you can just set a target ratio and the service will auto rebalance for you.
Or a Japan situation where it took 30 years, thanks to stagflation, which we have all the ingredients for right now.
Deflation just means hoard cash and hope you outperform literally every asset.
It always has. Historically everything goes up. What everybody forgets in this scenario is what if a sizeable chunk of your liquid assets are tied up in investments during a crash and you're 5-10 years to retirement? You're seriously going to wait another 10 years for the market to correct itself to then cash out so you don't lose any money? No you might even be dead before you even have the chance to use it.