The market is under intense selling pressure as witnessed by the 1,100 point drop in the Dow Jones average on Wednesday.
A logical and systematic approach to the lower stock prices would be to dollar-cost-average (DCA) when “the market” is in a correction phase for prices – if you believe the companies will survive and prosper in the future. Bear markets are opportunities to downsize the number of positions and add to the smaller number of held positions that are healthy enough to be the survivors of the bear and leaders in the next bull market. This is a foundational opportunity to set the stage for the next big advance. The key – “Know Your Company” so you can judge the risk/reward they present. Continue reading
