That being said, I plan to start dollar-cost-averaging into the stock market starting about September. After the Fed raises the fed funds rate a couple more times.
Hi Wendy -
I was really surprised to hear you say this, given your views that we could be entering a long period of negative real returns for the market in your posts like the one quoted below:
If you give the knee-jerk, “Markets always go up eventually,” what about the long stagflationary market of the 1970s that resembles the market we may be entering? Which may last longer than some elderly METARs may survive?
Obviously you don’t have to share details if you don’t want to, but I’m still curious to ask: How does this work into your broader strategy? Is it just that by September, you expect stocks to be at such a low level that their return prospects will be far better than they were six months ago?
And just in case it comes off that way, I’m not trying to call you out. I’m genuinely curious how a bearish investor decides low is low enough.
thanks,
dan