Quite true. Bonds returned 10-20% the last year in anticipation of a credit crunch and recession. This is why I stepped out of the stock market and into bonds early, to offset the crowd and catch the early gains. I'm looking at averaging back into stocks also.
Something to consider, is if this will be a more or less ordinary downturn. It seems unlikely, it has elements from several other severe downturns, the odds seem favorable for a big downturn with a tepid recovery.
I'm on the other side of the fence probably. Instead of catching it now I'll try to catch the other side by averaging into the upswing. My difficulty is I don't see what will be the driver for big growth after this. Fed stimulus is becoming rather impotent, and consumers are truly tapped out ... like I say it seems more likely for a tepid recovery, not what we saw after 2001.
Something to consider, is if this will be a more or less ordinary downturn. It seems unlikely, it has elements from several other severe downturns, the odds seem favorable for a big downturn with a tepid recovery.
I'm on the other side of the fence probably. Instead of catching it now I'll try to catch the other side by averaging into the upswing. My difficulty is I don't see what will be the driver for big growth after this. Fed stimulus is becoming rather impotent, and consumers are truly tapped out ... like I say it seems more likely for a tepid recovery, not what we saw after 2001.
if you look back in history by the time we were actually in the recession the selling stopped and the gains were underway. you really do need to take advantage of a drop early .forget the fact it may go lower, if you believe in buy and hold and you can take advantage of sweetning the deal just do it..... like those who last year wanted to wait for the rate cuts to start to buy bonds. by the time it started the juciest gains were already long gone.