Timing the Market – Waiting to buy on the “dip”

Was reading an article yesterday about an interesting stock buying strategy. Apparently when folks think the market is overheated/overpriced (like some do now), folks keep their money on the sideline in cash, and wait for the market to drop 2% – 3% in a day or two, then they rush in to buy the stocks. Just another strategy for timing the market.

The article noted that folks who have been doing this since the last time the market dipped 3% or more (2016) have  lost out on a 10% increase in the S&P500 over that time period, by just leaving their cash to the side. This further validates my thoughts (and the thoughts of most folks) that you can’t time the market – at least not in the short-term. I did do a write-up (Aug 5, 2017) on Ben Stein/Phil DeMuth’s thoughts on long-term trends that you can use to determine when is a good time to buy stocks vs. buying bonds/other investments.

For now, I continue to do dollar-cost averaging with my investments, putting in a high % of my take home pay into my 401K, Roth IRA and individual investments. Been doing that for years, and it has paid off even after many of the dips and crashed.


Anybody out there with an interesting market timing strategy?


Mr. 39 months

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