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Sitting on cash

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  1. #1

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    Sitting on cash

    Through the various interwebs a lot of people are saying that they remain in cash waiting for the next "correction" so they can buy cheap.

    Question is, when is the next correction? Do you know? If say the markets drop 10% from where they are now, is that the next correction? What happens if they drop another 10%? Would you know that?

    https://awealthofcommonsense.com/201...ash-part-deux/


  2. #2

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    The correction is now. If I had any cash available now I would be buying today.


  3. #3

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    Quote Originally Posted by bdw:
    The correction is now. If I had any cash available now I would be buying today.
    Too many loans?

  4. #4

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    Quote Originally Posted by pin:
    Too many loans?
    I havent applied for any yet new tax loans yet, but yeah thinking I might have too many already

  5. #5

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    Sitting on cash is like waiting for that call after your first date.

    You would need to take a punt and go for it. By the time you think it's the bottom, it's already known and all the institutional investors have taken their positions and the prices are only up after strong buying demand.


  6. #6

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    "2" should not be a part of the casino / opportunistic buying.


  7. #7

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    Read the article and have a couple of points to bring up.

    Are you looking at individual stocks or broad ETFs?
    Are you looking at trading or buying / holding?

    Make your investment decisions based on the present, and more importantly the future, not the past.
    Casino rules (poker) - play with the hand you have right now, don't go all in.

  8. #8

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    In my opinion, it's always good to keep cash in hand. As it goes down, you buy a little, you keep buying if it goes down more and you sell a little when it goes back up. Hedge your bet, make money. Trying to wait for the jackpot is a risky strategy that rarely works.


  9. #9

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    Original Post Deleted
    The article I linked?

  10. #10

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    Original Post Deleted
    That's all good and fine but you have to decide to buy and to sell at certain times, I don't think it's particularly wise to hold until you absolutely need the money. Of course one can take the safe approach and buy monthly which rounds out the bumps. There are many stocks that are great to hold for dividends with others, you take the occasional punt. It's only common sense to make some buys when the market is lower not necessarily trying to time the market and get rid of some stocks when they are high and you've made money.

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