A time-tested way to buy stocks when the market is tumbling π
Buying as prices are falling can pay off π€
When stocks are tumbling, itβs tempting to try your hand at timing the market (i.e., sell before prices go even lower and then buy before they inflect higher).
Unfortunately, no one is good at it. Even Warren Buffett β arguably the most successful investor in history β admits heβs terrible at this and advises against trying it.
Thereβs always the risk that you think youβve identified the bottom, but prices continue to fall. That can be pretty regretful, especially if you donβt have the time to recoup those losses.
Thereβs also the risk that you miss the bottom and prices go higher, in which case you may have done irreversible damage to your potential long-term returns.
Fortunately, thereβs a lower-stress, time-tested way to invest for those who believe prices will be higher in a couple years and can put in the time. Itβs a simple strategy that worked out great as the market crashed during the financial crisis.
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