The Dow dropped by nearly 504 points (503.99) yesterday. Now what? Don’t panic. As the bells start ringing to open the markets again today, they will likely slip even further. Don’t panic. There’s a silver lining to this.
I’m an optimist. The glass is always half-full. The silver lining here is actually a benefit of Dollar-Cost Averaging. If you don’t know what that is, you’ll pick up a little bit in this post, but it’s a good time to subscribe to this site as we’ll be discussing DCA a little bit further later this month.
As everyone knows, if you want to make money in the stock market, you have to buy low and sell high. A lot of money can be made if only you can do that. Most of us don’t have the crystal ball to do it perfectly though. Let me help you out. Buy now.
When you see a headline like the one above, it’s a pretty safe bet that it won’t get much lower. And if it does? Dollar-Cost Average to the rescue. And in the long run, the market will come back up, and you won’t even need another dot-com bubble to make yourself a safe full of money.
So what if the Dow drops more than it has in 7 years? Buying at a low like this can only help your Dollar-Cost Averaged prices. And if it gets lower? Buy more. Pretty simple really.
The people in charge here at Beating Broke are not financial professionals. Please don’t take our advice for gospel. If you are going to follow the advice here, please consult a financial professional first. And, just for the record, nothing is a sure thing in investments. So if you lose all your money, don’t come crying to us. And don’t sue us either.
I started this blog to share what I know and what I was learning about personal finance. Along the way I’ve met and found many blogging friends. Please feel free to connect with me on the Beating Broke accounts: Twitter and Facebook.
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