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chinaco · 05-19-2007, 08:39 AM

Duh statement here... Downturns are the opposite of the upturns... Buy when it appears to be creeping up from the bottom. You won't get it at the cheapest, but won't ride it down further either. A 20% downturn is not as bad as say a 40% or 50%.

Either way, I would hang in there and rebalance. The only way I would exit the market is if I had knowledge of some fundamental situation that would not self correct. It is unlikely that I would have that knowledge.

To avoid scenarios like Japan in the 90's be well diversified.

Once people get past thinking that they are going to make 25% per year and get realistic, they follow a reasonable and realistic strategy.

Buy low sell high... its the only way to win. Rebalancing does that for you. target a reasonable % and you will compound your way into FI and RE.

05-19-2007, 08:39 AM	#7
chinaco Thinks s/he gets paid by the post Join Date: Feb 2007 Posts: 3,052	Duh statement here... Downturns are the opposite of the upturns... Buy when it appears to be creeping up from the bottom. You won't get it at the cheapest, but won't ride it down further either. A 20% downturn is not as bad as say a 40% or 50%. Either way, I would hang in there and rebalance. The only way I would exit the market is if I had knowledge of some fundamental situation that would not self correct. It is unlikely that I would have that knowledge. To avoid scenarios like Japan in the 90's be well diversified. Once people get past thinking that they are going to make 25% per year and get realistic, they follow a reasonable and realistic strategy. Buy low sell high... its the only way to win. Rebalancing does that for you. target a reasonable % and you will compound your way into FI and RE. __________________ Planned FIRE Summer 2011 Disclaimer: I make no warranty or guarantee about the accuracy or completeness of this information. I am not a financial planner, my comments only represent my opinion.