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You might have heard the phrase/idea that it's best to invest when "there is blood in the streets!" Whoa, sounds harsh eh?
I don't think the original author meant when it was a total collapse though.
Your money in 401Ks, IRA's and investment accounts, that's part of your IF TS DOESN'T HTF plan. Yes, we have to plan for both. Statistically speaking, your more likely to reach retirement age than full on apocalypse to happen. Be safe, prepare for both.
So that's why I am in stock market. It has absolutely nothing to do with my personal preps, I would never put a penny in the market if I doubted that I could feed my family for a year or more on my own, if I did not have emergency savings to last us a year, etc. etc. etc.
The classic formula is "buy and hold forever" thinking. That follows the mantra that the Dave Ramsey's of the world and various old skewl investors like to throw out that "the stock market returns on average 12% per year." As in all numbers games, this can be skewed and I'm sure if you took a STELLAR short period of time, that might be true. However there are plenty of examples of LONG periods of time wherein the market didn't do hardly anything. Just like people believed the "house prices always go up" non sense a decade or so back- yeah you see where that went.
So in that regard, don't fall in love with any stock or fund that you feel you want to keep forever. God has not put this together, so let it be cut asunder when necessary.
Dollar cost averaging? Maybe over a long long term threshold.
What is your cash going into right now? Directly in a fund(s) or directly into a stock? If you have an automatic monthly investment set up, see if your cash can go directly to a money market fund. Yes, you won't get crap of a "return" in that fund, but your not going to let it sit in there the whole time anyways. Your going to use the money market fund as a large checking account to buy mutuals and stocks from when YOUR READY, not when the money auto drafts from your checking account on the 15th or whenever.
This will allow you to build up funds, be patient and buy on market dips. Who doesn't like a deal? Maybe that oil company that was $7. last fall doesn't look like a good buy now that's it's $1.50 Well hell, it bottomed at .14 cents about a month ago. If you "dollar cost averaged", it would take you a helluva long time to recoup on the $7. stock trades from last fall.
If you bought in at $.29 cents, sold at $1.50 a little over a month later, you could make some cash and keep 500 shares to see if the company ever does make it back up in the $2. to $3. range. If you had cehones of steel (I don't) you might have risked it at $.20 a share and even 1,000 shares ($200. investment) would now be worth $1500. Do you think it will go to the moon? Probably not. Cut your risk, sell at least half (still coming out $700. ahead) and "hold" the rest and sell in dribs and drabs if you so desire.
Patience, accepting the risk, realizing that you could very well lose every cent and a watchful eye all help here. Pick about 6 stocks or funds, truly "research" them, watch them for six months or more, especially during bad market times. Read the news about them. Are they in a volatile industry such as oil/energy is now? Watch for oil prices, geopolitical events that affect oil prices, etc.
You can and will lose here and there. The tendency will be to "cut and run" when something goes down a bit. If you feel like you bought it at a good price, then stick with it. Worse case you can lose all your investment if the company goes belly up. So avoid putting all eggs in one wet paper basket...
Economy is fragile, markets are crazy up, crazy down, their is opportunity. 15% return in a month on a small investment is pretty good now a days. If I do nothing more with that account this year, I'm still way ahead of typical returns. Finally, don't get greedy.
I don't think the original author meant when it was a total collapse though.
Your money in 401Ks, IRA's and investment accounts, that's part of your IF TS DOESN'T HTF plan. Yes, we have to plan for both. Statistically speaking, your more likely to reach retirement age than full on apocalypse to happen. Be safe, prepare for both.
So that's why I am in stock market. It has absolutely nothing to do with my personal preps, I would never put a penny in the market if I doubted that I could feed my family for a year or more on my own, if I did not have emergency savings to last us a year, etc. etc. etc.
The classic formula is "buy and hold forever" thinking. That follows the mantra that the Dave Ramsey's of the world and various old skewl investors like to throw out that "the stock market returns on average 12% per year." As in all numbers games, this can be skewed and I'm sure if you took a STELLAR short period of time, that might be true. However there are plenty of examples of LONG periods of time wherein the market didn't do hardly anything. Just like people believed the "house prices always go up" non sense a decade or so back- yeah you see where that went.
So in that regard, don't fall in love with any stock or fund that you feel you want to keep forever. God has not put this together, so let it be cut asunder when necessary.
Dollar cost averaging? Maybe over a long long term threshold.
What is your cash going into right now? Directly in a fund(s) or directly into a stock? If you have an automatic monthly investment set up, see if your cash can go directly to a money market fund. Yes, you won't get crap of a "return" in that fund, but your not going to let it sit in there the whole time anyways. Your going to use the money market fund as a large checking account to buy mutuals and stocks from when YOUR READY, not when the money auto drafts from your checking account on the 15th or whenever.
This will allow you to build up funds, be patient and buy on market dips. Who doesn't like a deal? Maybe that oil company that was $7. last fall doesn't look like a good buy now that's it's $1.50 Well hell, it bottomed at .14 cents about a month ago. If you "dollar cost averaged", it would take you a helluva long time to recoup on the $7. stock trades from last fall.
If you bought in at $.29 cents, sold at $1.50 a little over a month later, you could make some cash and keep 500 shares to see if the company ever does make it back up in the $2. to $3. range. If you had cehones of steel (I don't) you might have risked it at $.20 a share and even 1,000 shares ($200. investment) would now be worth $1500. Do you think it will go to the moon? Probably not. Cut your risk, sell at least half (still coming out $700. ahead) and "hold" the rest and sell in dribs and drabs if you so desire.
Patience, accepting the risk, realizing that you could very well lose every cent and a watchful eye all help here. Pick about 6 stocks or funds, truly "research" them, watch them for six months or more, especially during bad market times. Read the news about them. Are they in a volatile industry such as oil/energy is now? Watch for oil prices, geopolitical events that affect oil prices, etc.
You can and will lose here and there. The tendency will be to "cut and run" when something goes down a bit. If you feel like you bought it at a good price, then stick with it. Worse case you can lose all your investment if the company goes belly up. So avoid putting all eggs in one wet paper basket...
Economy is fragile, markets are crazy up, crazy down, their is opportunity. 15% return in a month on a small investment is pretty good now a days. If I do nothing more with that account this year, I'm still way ahead of typical returns. Finally, don't get greedy.
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