I clearly understand the principals that are being stated her, however have to say that I would be ecstatic if I had pulled my $$$ out when the market was at a high and waited for the corrections we are presently witnessing. To reinvest now would be fantastic. Unfortunately I averaged down throughout this spiral and am now out of funds and the market has continued its downward trend. I have doubled my exposure in the companies I own however am still significantly down. Sure I can continue to invest as I continue to work, but my monthly contributions pale’s in comparison to the funds I already have in the market and these have taken a huge hit. To compare to a Warren Buffet is unrealistic. When he invests his money in a company he also insists that he gets a 10 % premium on his investment regardless of the SP. Warren also does not run out of funds to invest in these times. He had and continues to have Cash on the sidelines. So hoping the market goes down more at this point is not in my view a happy outcome unless you still have cash on the sidelines . I do get the point that for the younger investor, or someone who is mid way, or just starting out, Lower SP’s are advantageous. Actually to the new investor it is great news. It is just a matter of where you are in your investment life/cycle. Unfortunately if you had a large amount of money in the markets and left it in, you are now a spectator.
What has happened over the last few months is unprecedented in my view. I have shares in good companies that were trading at $9.00 and are now at $1.00 or $24.00 and now at $2.00 and $3.00 dollars. For them to rebound to their previous averages could take several years and sadly some companies will not even survive.
I’m Not Rejoicing.
