Quick background, I invest in low cost etf's because it is simple and effective. Trying to take it a step further, can someone please point me in the direction to get more information on the following:
It is my 5th grade level understanding that when the market goes flying through the roof, people have more $ and housing prices, etc. go up as well. When the market tanks, people have less $ and housing prices, etc. go down.
That being said, I see people talking about buying in down markets.... not dollar cost averaging or reoccurring set payments but "hey the market is so low right now I am going to throw 100k or more in because it is a bargain" (generic example). Where does that money come from? Do these people sell other assets at a loss to put into these funds, houses etc. Do these people keep huge cash reserves on hand? If that is the case is it "worth" it because they could miss out on the gains while this money is on the sidelines?
Like I said, if anyone can point me in the right direction of a book or give me a basic understanding it would be appreciated.