Is it wise to wait for the market to inevitably drop before investing a large sum of money now? Or, should I invest in an ETF now and not worry about it?

like
Posting as :
works at
You are currently posting as works at

Both. Dollar cost averaging. Add a fixed amount weekly over the next 6 months - year

likesmart

Don’t necessarily disagree with you as I do DCA myself, but it’s interesting to note that LSI on average has higher Sharpe ratios and annualized returns than DCA, albeit at the expense of more frequent and more intense drawdowns.

I think what should be a part of OP’s decision is how much of a decline they are willing to see in this investment, as well as the time horizon. Assuming it’s for retirement, 10+ years away, I’d LSI all the way since that money will have ample time to recover from any downturns.

“So, to the extent that an investor believes the positive risk premia are likely to exist in the future, LSI would remain the preferred method for investing an immediately available large sum of money. But if the investor is primarily concerned with reducing short-term downside risk and the potential for regret, then DCA may be a better alternative.”

https://static.twentyoverten.com/5980d16bbfb1c93238ad9c24/rJpQmY8o7/Dollar-Cost-Averaging-Just-Means-Taking-Risk-Later-Vanguard.pdf

Can’t time the market so ...

like

Depends. For long term? Nah. It’s shown it matters more getting into the market as soon as possible vs. Waiting for a dip.

like

Best Bet is to add monthly and not wait for a dip as periods of time all have around the same level in the longer time frames

like

Dollar cost average for sure. When the market dropped like a rock in March, did you really think hey this is my chance, or were you scared to invest because you didn’t know if it would keep dropping

like

I invested 30k+ in March.

Of course, only buy when it’s about to go up and sell before it’s about to go down. The trick is figuring out when that it is...

like

A drop is inevitable at some point, the question is, Will the markets go up 30% before they drop 20%? Since you (or anybody for that matter) do not know that, the only option is to invest now and not try to time the market.

like

I expect around September. Here is the thought process. Enough people are vaccinated for free stimulus money to dry up. Then people who have access to money and time to follow Reddit and make day trades are back at work as offices have opened up and that further removes the demand from the market. Tech stocks that have crazy inflation will correct (30%) to historical PE ratios and stocks like GME will drop 90% to true valuations. That is what my crystal ball tells me

like

Time in the market beats trying to time the market. Tons of articles back this up. DCA fam.

like

Came here to say this ⬆️

What is this inevitable drop you speak of?

If the market is generally upward sloping (it is) there’s a chance the “drop” will be to a level higher than it is today.

There's money to be made now. Microchips, oil and gas, metals, etc. Not everything is at the top of its cycle. Plenty of room for growth in those spaces.

Depends on the time horizon. 30 years? Easy buy decision. 1 year? Stay in cash.

💎🙌💎

Whenever I see someone post questions like this I cringe at most of the responses. As someone who lives and breathes markets, I cannot stress enough that you should seek this information from better sources.

"As someone who claims to have the right answer, I'm just going to post a comment with no value"

likefunny

Is it wise to buy low and sell high you're asking? Yes.

Related Posts

Do we still receive points for the stay if I book through AmexTravel?

like

What’s happening with the Chinese stocks? Do you think it’ll continue going down or will it go back up?

like

Robinhood just kicked me off their platform and I have no idea why. Now I need to quickly liquidate. Any recommendations to invest in mostly VOO without any fees and a nice UI for my phone? I need it to also connect to Mint.

like

Anyone willing to share what assets they're investing in with the extra money from being overemployed?

like

Is there any YouTube channels someone wants to recommend which are found to be authentic in terms of wanting to follow the current housing market updates? I’ll be a first time home buyer in the next 12 months.

like

Started my Roth IRA in 2019 and bought some funds that aren’t doing so well. I want to trade them for an index fund that the majority of my Roth IRA is in. Will I be penalized for “selling” before a certain amount of time? I don’t plan on taking the money out until retirement, just want to reallocate.

like

What is everyone buying today?

like

LCSW 50k loan repayment- Has anyone been granted a contract through the National Health Service Corps Loan Repayment Program? I’m interested in applying for the 2 years of full time work as an LCSW but my loans are a bit under 50k so I’m wondering if they would only give me what I need to clear my loans or would I still get 50k as long as I complete my contract ?

Has anyone asked for a refund for payments made towards student loans during the pandemic and actually received it yet?

Today I lost out on a house because my offer of $90k over the list price was beat out by another bid. Everyone else having an equally crappy Monday?

likefunny

Do we have tax calculator in tcs

like

Any thoughts of investing in gold or gold related instruments?

like

What is your ratio of Net Worth / Annual Income? What's your age?

Would prefer if folks don't share their gross net worth or income #s as this is more about how have folks been doing given the resources they have.

like

What is the benefit of investing in mutual funds such as VTSAX over a similar ETF other than reoccurring investments that allow you to set it and forget it? Is that why people choose them?

like

How long does it take to get ofc Laptop after DOJ?

like

Hey Folks ,

Can you help me understand the PF deductions in Coforge CTC, Is it just the employers contribution ? And employees share will be deducted from Gross Monthly Salary?
Also about LTA , Can i opt out of it and get it as taxable amount?

Thanks in Advance 🙂

like

Does the employee get both the employer and employee contribution to PF or only own contribution to PF?

like

Anyone been able to work from Dubai for a UK/US firm and benefit from no taxes? I know if you are a US citizen you pay taxes where you are globally, but if you are British, then you only pay income tax on UK income - so if you live more than half the year abroad you are classed as non-domicile resident, but wanted to hear if anyone’s done this or heard about it?

like

Which credit card do you think is the best for ME consultants?

like

More Posts

Meeting with a recruiter at one of the FAANG companies. I won’t be able to move jobs because of H1b /GC at least for the next year. Any idea if I should start off with that or should I just try to understand the work that they have been doing?

like

Has anyone at a mega fund like KKR or Apollo experienced coinvesting and actually being able to put money into a deal?

like

Do PE firms give annual COL raises, even in years when inflation is standard/normal?

like

Have 2 $100 Southwest luv vouchers, need to fly before 7/28. Selling for $150 OBO

like

Salary of a solution architect in cyber security( pre sales and with RFP experience) industry with 7-8yrs of experience.

like

Strategies for getting a job at Wieden + Kennedy:

1. Create a competitive shop that will steal all of their clients in the future, forcing them to acquire you today.
2. Become friends with every person at the agency and have them all refer you on the same day.
3. Just win all of the awards.
4. Start showing up to their office with big ideas, and complain about HR not being able to find you in the system occasionally.

Running out of characters, see comments for more

likehelpfulfunny

Virtual receptionists….anyone utilize this and if so, feedback? If not, thoughts? Start

like

9/8 Thread (General):

like

Any suggestions on volunteer opps in Atlanta? Would really like to mentor, but not sure if that’s possible given covid, so taking any suggestions.

like

does anyone know anything about experiences working at “Stampli”? I have an interview for an Account Executive position there!

uplifting

Where’s the best place to find startup jobs/opportunities? I’ve looked on crunchBase and AngelList but feels like I’m throwing my resume down a black hole. I know LinkedIn networking is always a move but any other channels out there to check out?

like

How has talking to your matches been? ☺️

like

How about NEO? Reminding me of the early Ether runs.

like

When a consolidated unitary group acquires a TX Corp, does TX follow Sec. 382 and Sec. 383 and apply a limitation on the utilization of the acquired entity's TX R&D credits following the acquisition?

Is it better to register as DBA or LLC for someone starting a side hustle that may hopefully turn to a small business?

like

I'm not sure if I have the willpower to become "successful" in this industry.

like

Hi Everyone! Looking to learn more about the management consulting strategy arm in Big 4 - would love to have a chat and ask a few questions.

Thanks!

like

I’m trying to decide on a hotel in the Maldives - currently choosing between the W Maldives and the Park Hyatt Maldives.

Does anyone have a perspective based on experience?

If I’m fully vaccinated, where would be a good place to travel and work from right now? I was looking into Hawaii but you still have to pay for a $90 test apparently.

like

What is the salary range for lateral entry employees who has 8 + years of experience? Role is level 9 and Technology stack is pega.

like

Additional Posts in Consulting

Does anyone know if things like jury duty or bereavement leave count against your utilization? I've heard it doesn't count the same way holidays and PTO do, but not sure how that is possible.

like

What a power play. Who consulted on this one.

Post Photo
like

Any good books/learning materials on how consulting/non-product firms acquire other firms? Struggling to find relevant info. “Talent-based acquisitions” seem to be all about hr/recruiting. What are alternative keywords I should use?

like

What does bench life look like for you?
For me a typical day looks like this
9 am- sign in and check emails
930-11 : look for a new job
11-2 lunch and nap
2-3 : sometimes meetings, mostly begging people for billable work
3-4:30 - proposal work if I have it or more job hunting
5-9pm family time and dinner
10-3am - netflix, videogames, cry myself to sleep

likefunnyupliftinghelpfulsmart

Hotel or corporate housing? Benefits and drawbacks of each. This is for a long term engagement in Denver. I really like getting my Marriott points, but wouldn’t mind staying some weekends in Denver.

like

Waking Life. What the fuck.

like

any others having issues with delta showing up as a result in trips?

like

Bain & Company Are there books to read to be better at consulting! Deloitte EY Accenture PwC McKinsey & Company Boston Consulting Group Booz Allen Hamilton Bain & Company

like

Any tips from moving out of advisory and into consulting? I've helped with SAP implementation and have my AWS CCP. Really desperate to get out of risk compliance world tbh

like

I finally have an extra room to set up a home office. I’m looking at motorized standing desk, but there are so many options out there that it is overwhelming. What’s your recommendation for an L-shaped desk?

like

Best consulting firms for the retail and CPG industries?

like

Getting back to the travel is like going for a new job. Can't believe I left my child behind again.

like

Any really impactful books that have helped you career-wise? Not necessarily consulting focused. In need of guidance and a new book so figured I'd kill two birds with one stone or whatever.

like

If your role is being closed/being laid off (not due to performance issues) just firm downsizing, do you tell the companies you are interviewing? How to phrase it?

like

What are some publications, books, podcasts, online classes etc that can help me prepare for my first year in consulting? Have 5 years of experience in finance and making the jump to consulting.

like

How do you know people like working with you? I always feel like I’m not liked

likehelpful

Planning to do a PRM or FRM qual. How useful is it to move from Big 4 Risk and reg consulting to industry? Finding it hard to get anything other than non-PM roles

like

My client is telling me about how painful she finds PAID overtime. While she gets💰, I get %.. & utilization doesn't pay the bills!

like

A recruiter from google added me on LinkedIn...here's the catch, she head of recruiting in india haha (im white and in NYC). Should I reach out to her first?

like

Goodbye, platinum Amex. Expires in one month...

like

New to Fishbowl?

Download the Fishbowl app to
unlock all discussions on Fishbowl.
That was just a preview…
Sign Up to see all discussions
  • Discover what it’s like to work at companies from real professionals
  • Get candid advice from people in your field in a safe space
  • Chat and network with other professionals in your field
Sign up in seconds to unlock all discussions on Fishbowl.

Already a user?
Login here

Share

Embed this post

Copy and paste embed code on your site

Preview

Download the
Fishbowl app

See what’s happening in your industry
from the palm of your hand.

A phone with Fishbowl app

Scan your QR code to download
Fishbowl app on your mobile

Download app

Sign up for free to view this conversation on Fishbowl

By continuing you agree to Terms of Use and Privacy Policy

Already have an account? Log in

Sign up for free to continue using Fishbowl

By continuing you agree to Terms of Use(New) and Privacy Policy(New)
Messaging rates may apply

Already have an account? Log in

For account settings, visit Fishbowl on Desktop Browser or

General

Legal