Author Topic: Stock Market Correction  (Read 2767 times)

eaw13749

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Stock Market Correction
« on: January 21, 2014, 05:44:40 AM »
I am new to the site, so my question may seem a little dumb.  I received a work bonus that I plan to invest along with savings in a low-interest bearing account from my credit union.  My plan to place it in a "balanced" mutual fund which earned about 7% in 2013 (I have had this account for several years).  However, I hear a lot of predictions that the stock market will correct itself from its artifically high returns.  Several people are tieing the correction to the debt ceiling battle that is sure to make the news again.  If the market drops, this will reduce the price per share and ultimately effect the returns in the mutual fund account.  Should I wait?  The credit union account is earning a minimal .08% at present.  Any thoughts would be appreciated.

grantmeaname

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Re: Stock Market Correction
« Reply #1 on: January 21, 2014, 05:56:14 AM »
Don't listen to the talking heads. Complete an investment policy statement, then just buy into mutual funds according to your IPS and rebalance as needed. Plenty of people have gotten burned waiting for the next big opportunity.

Khan

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Re: Stock Market Correction
« Reply #2 on: January 21, 2014, 07:07:27 AM »
If you're worried about a harsh correction, then perform Dollar Cost Averaging over a period of time(6-12 months) depending on the amount(6 months for anything less then 20k we'll say).

Could it crash right after that period? Sure.

Does anyone know anything? No. The talking heads are as worthless as fucking horoscope writers. With such titles as DOW 36000 just prior to the .com bust, and whatever the hell they were writing during the financial breakdown.

Corrections happen. You know what you don't do during them? Sell.

Buy. Buy buy. Buy. Buy buy buy. Buy.

Things go down? Keep buying.

Everyone's happy in a bull market, if you have money in it, you're making money, hurray! Profits come when you buy at low prices... which is when everyone is very, very unhappy. If there's blood in the street, it's time to buy -more-.

Dr. Doom

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Re: Stock Market Correction
« Reply #3 on: January 21, 2014, 07:29:26 AM »
+1 to comments by Khanjar and grantmeaname

I'd suggest carefully reading this post
http://jlcollinsnh.com/2013/05/22/stocks-part-xviii-investing-in-a-raging-bull/
by JLCollinsnh


eaw13749

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Re: Stock Market Correction
« Reply #4 on: January 21, 2014, 06:12:23 PM »
Thanks to everyone who has replied to my post.  I will follow advice and invest.  Thanks for the link as well.  Very informative article.