Buy During This Dip?

Have a question about your personal investments? No matter how simple or complex, you can ask it here.
Topic Author
Milujo
Posts: 15
Joined: Fri Nov 30, 2018 2:18 pm

Buy During This Dip?

Post by Milujo » Mon Aug 05, 2019 1:44 pm

With stocks plummeting today, is now a good time to add excess savings money to my three-fund portfolio? Overall, we don't try to time the market, but when the market dropped in December 2018, I added a few thousand which has paid off. I don't plan to ever sell when stocks seem too high to last, but when stocks plummet and I have extra savings, is it wise to purchase stock then? Thanks.

User avatar
greg24
Posts: 3710
Joined: Tue Feb 20, 2007 10:34 am

Re: Buy During This Dip?

Post by greg24 » Mon Aug 05, 2019 1:45 pm

Yes, there are people on the board who think buying on the dip is a good idea.

You should search the forum for Really Bad Day.

ponyboy
Posts: 781
Joined: Fri Feb 06, 2015 10:39 am

Re: Buy During This Dip?

Post by ponyboy » Mon Aug 05, 2019 1:46 pm

If you have the extra coin, go for it. Its not the boglehead way and many wouldnt encourage it...but with a 5-6% drop in the past couple days...have at it.

I randomly put an order in on friday and it didnt get executed yet or whatever they call that. Guess ill be buying in the dip too.

minimalistmarc
Posts: 509
Joined: Fri Jul 24, 2015 4:38 pm

Re: Buy During This Dip?

Post by minimalistmarc » Mon Aug 05, 2019 1:46 pm

Milujo wrote:
Mon Aug 05, 2019 1:44 pm
With stocks plummeting today, is now a good time to add excess savings money to my three-fund portfolio? Overall, we don't try to time the market, but when the market dropped in December 2018, I added a few thousand which has paid off. I don't plan to ever sell when stocks seem too high to last, but when stocks plummet and I have extra savings, is it wise to purchase stock then? Thanks.
But stock if your asset allocation needs rebalanced. Today is a much better day than Thursday last week.

User avatar
Sandtrap
Posts: 8480
Joined: Sat Nov 26, 2016 6:32 pm
Location: Hawaii No Ka Oi , N. Arizona

Re: Buy During This Dip?

Post by Sandtrap » Mon Aug 05, 2019 1:48 pm

Milujo wrote:
Mon Aug 05, 2019 1:44 pm
With stocks plummeting today, is now a good time to add excess savings money to my three-fund portfolio? Overall, we don't try to time the market, but when the market dropped in December 2018, I added a few thousand which has paid off. I don't plan to ever sell when stocks seem too high to last, but when stocks plummet and I have extra savings, is it wise to purchase stock then? Thanks.
There might be a bigger dip coming up in the future. You can also wait until that one to make it worth your while.

j :shock:
Wiki Bogleheads Wiki: Everything You Need to Know

Godot
Posts: 246
Joined: Fri Jun 08, 2018 3:44 pm
Location: Little Beirut

Re: Buy During This Dip?

Post by Godot » Mon Aug 05, 2019 1:50 pm

greg24 wrote:
Mon Aug 05, 2019 1:45 pm
Yes, there are people on the board who think buying on the dip is a good idea.

You should search the forum for Really Bad Day.
This is a dip??
Estragon: I can't go on like this. | Vladimir: That's what you think. | ― Samuel Beckett, Waiting for Godot

RadAudit
Posts: 3613
Joined: Mon May 26, 2008 10:20 am
Location: Second star on the right and straight on 'til morning

Re: Buy During This Dip?

Post by RadAudit » Mon Aug 05, 2019 1:51 pm

minimalistmarc wrote:
Mon Aug 05, 2019 1:46 pm
Buy stock if your asset allocation needs rebalanced.
+1 And, more specifically, if you've breached the rebalance bands noted in your IPS.
FI is the best revenge. LBYM. Invest the rest. Stay the course. - PS: The cavalry isn't coming, kids. You are on your own.

User avatar
steve roy
Posts: 1722
Joined: Thu May 13, 2010 5:16 pm

Re: Buy During This Dip?

Post by steve roy » Mon Aug 05, 2019 1:52 pm

Follow your IPS. Rebalance your asset allocations as needed.

User avatar
bligh
Posts: 1121
Joined: Wed Jul 27, 2016 9:13 pm

Re: Buy During This Dip?

Post by bligh » Mon Aug 05, 2019 1:54 pm

Buy when you have money. In the long run, if you think stocks are going to have positive returns, the sooner you get in the better. The short term movements are just noise unless you are planning on selling for some reason.

mak1277
Posts: 1178
Joined: Fri Jan 09, 2015 4:26 pm

Re: Buy During This Dip?

Post by mak1277 » Mon Aug 05, 2019 1:54 pm

As someone who always has extra cash and doesn't have a rigidly defined IPS, I absolutely bought today.

stimulacra
Posts: 634
Joined: Wed Dec 21, 2016 3:50 pm
Location: Houston

Re: Buy During This Dip?

Post by stimulacra » Mon Aug 05, 2019 1:56 pm

Had some random cash sitting in my accounts and bought VTSAX today. Won't liquidate any bonds until we hit 15-20% below previous high.

User avatar
Meg77
Posts: 2577
Joined: Fri May 22, 2009 1:09 pm
Location: Dallas, TX
Contact:

Re: Buy During This Dip?

Post by Meg77 » Mon Aug 05, 2019 2:01 pm

mak1277 wrote:
Mon Aug 05, 2019 1:54 pm
As someone who always has extra cash and doesn't have a rigidly defined IPS, I absolutely bought today.
Ditto. But I didn't deploy all my excess cash. We could see another 5-10% drop before it comes back up. I sold some RE recently so set up monthly automatic investments to invest my cash in stocks over the next 8 months; usually I'd just invest a lump sum but it was larger than I'm used to and the market at all time highs made me want to DCA instead. However if the market does have RBDs between now and then, I'll put in a little extra here and there. Games, noise, sure - but I have always found noisy games hard to resist...
"An investment in knowledge pays the best interest." - Benjamin Franklin

livesoft
Posts: 68616
Joined: Thu Mar 01, 2007 8:00 pm

Re: Buy During This Dip?

Post by livesoft » Mon Aug 05, 2019 2:13 pm

Today is a better day to buy than back on July 26th.

Today is not a bad day to sell all those bond funds you bought on July 11.
Wiki This signature message sponsored by sscritic: Learn to fish.

KlangFool
Posts: 14153
Joined: Sat Oct 11, 2008 12:35 pm

Re: Buy During This Dip?

Post by KlangFool » Mon Aug 05, 2019 2:20 pm

OP,

I am buying because today is my annual rebalancing day.

KlangFool

FootballFan5548
Posts: 227
Joined: Mon May 01, 2017 2:20 pm

Re: Buy During This Dip?

Post by FootballFan5548 » Mon Aug 05, 2019 2:24 pm

Ordinarily I wouldn't buy today, but I'm traveling for business the rest of the week starting tomorrow, I don't think I'll have the opportunity to buy if I wanted to later this week, so I just pulled the trigger on some SPY down 3.1%.

User avatar
Wiggums
Posts: 1941
Joined: Thu Jan 31, 2019 8:02 am

Re: Buy During This Dip?

Post by Wiggums » Mon Aug 05, 2019 2:28 pm

I’m not buying today. The market goes up and down.

User avatar
nisiprius
Advisory Board
Posts: 39461
Joined: Thu Jul 26, 2007 9:33 am
Location: The terrestrial, globular, planetary hunk of matter, flattened at the poles, is my abode.--O. Henry

Re: Buy During This Dip?

Post by nisiprius » Mon Aug 05, 2019 2:45 pm

On July 24th, 2019, the S&P 500 closed at 3019.56.
As I write this, it is at 2827.21.
So, it is down 6.4% from the last top.


On October 9th, 2007, the S&P 500 closed at 1565.15.
1565.15 - 6.4% = 1464.98.
The S&P 500 closed below 1464.98, at 1,453.70, on November 9th, 2007.

In your opinion, was November 9th, 2007 (the blue dot on the chart) a good time to buy?

Image

On July 7, 2011, the S&P 500 closed at 1,353.22.
1353.22 - 6.4% = 1,266.61.
On August 2nd, 2011, the S&P 500 closed below 1,266.61, at 1,254.05.

In your opinion, was August 2nd, 2011 a good time to buy?

Image

A sudden sharp tumble in stocks can precede a boom.
A sudden sharp tumble in stocks can precede a crash.
The moment you decide to buy might be close to the bottom.
The moment you decide to buy might be just a bit down from the top and far from the bottom.
The moment you decide to buy might be partway in between.

There are no simple, reliable rules.
Last edited by nisiprius on Mon Aug 05, 2019 3:23 pm, edited 3 times in total.
Annual income twenty pounds, annual expenditure nineteen nineteen and six, result happiness; Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery.

KingRiggs
Posts: 322
Joined: Wed Dec 12, 2018 12:19 pm
Location: Indiana

Re: Buy During This Dip?

Post by KingRiggs » Mon Aug 05, 2019 2:49 pm

We usually get our monthly deposit into 401k on about the 29th of the month. A delay at the accountant's office has resulted in the deposit being made today or tomorrow. It's going straight to the equity portion of my holdings (I'm about balanced with my target AA due to the drop of last week). I'm not complaining.
Advice = noun | Advise = verb | | Roth, not ROTH

User avatar
Socrates
Posts: 416
Joined: Sun May 13, 2018 10:27 pm
Location: Margaritaville

Re: Buy During This Dip?

Post by Socrates » Mon Aug 05, 2019 2:53 pm

SP prices are not much of a dip.......Early June 2019????
“Don't waste your time looking back. You're not going that way.” ― Ragnar Lothbrok.

User avatar
birdog
Posts: 293
Joined: Fri Apr 07, 2017 1:35 pm

Re: Buy During This Dip?

Post by birdog » Mon Aug 05, 2019 3:10 pm

I bought today but would have bought today regardless of the market conditions as I had cash to add. And that’s what I do when I have cash to add, I buy.
Last edited by birdog on Mon Aug 05, 2019 9:28 pm, edited 1 time in total.

User avatar
BL
Posts: 9162
Joined: Sun Mar 01, 2009 2:28 pm

Re: Buy During This Dip?

Post by BL » Mon Aug 05, 2019 3:12 pm

I have been wondering about all those threads about waiting for a down point. Is this it or are they afraid it will go down more? I can see never getting back in in that case.

TLC
Posts: 63
Joined: Mon Feb 18, 2008 5:20 pm

Re: Buy During This Dip?

Post by TLC » Mon Aug 05, 2019 3:24 pm

KlangFool wrote:
Mon Aug 05, 2019 2:20 pm
OP,

I am buying because today is my annual rebalancing day.

KlangFool
Is a Happy Birthday wish in order?

bck63
Posts: 714
Joined: Fri Sep 28, 2018 4:59 pm

Re: Buy During This Dip?

Post by bck63 » Mon Aug 05, 2019 3:28 pm

Meg77 wrote:
Mon Aug 05, 2019 2:01 pm
We could see another 5-10% drop before it comes back up.
How do you know this? What about a 10-20% drop? Or a 20-30% drop? How's about 40-50%? There is absolutely no guarantee, nor any reason to believe, they market will "come back up" after a 5-10% drop.

Seasonal
Posts: 550
Joined: Sun May 21, 2017 1:49 pm

Re: Buy During This Dip?

Post by Seasonal » Mon Aug 05, 2019 3:29 pm

There are two different reasons the market declines:

1) The market irrationally expects future returns to be lower.

2) The market rationally expects future returns to be lower.

If you're doing something other than pre-planned rebalancing or periodic investmenting, you should buy in the first case, but not in the second.

User avatar
rustymutt
Posts: 3763
Joined: Sat Mar 07, 2009 12:03 pm
Location: Oklahoma

Re: Buy During This Dip?

Post by rustymutt » Mon Aug 05, 2019 3:31 pm

But what if the dip continues for say, 2 years and ends up 50% down, before starting backup? This is why your portfolio should be ready for anything the market can throw at it. Well balanced with good credit quality and some tbills.
I'm amazed at the wealth of Knowledge others gather, and share over a lifetime of learning. The mind is truly unique. It's nice when we use it!

Lee_WSP
Posts: 1208
Joined: Fri Apr 19, 2019 5:15 pm
Location: Arizona

Re: Buy During This Dip?

Post by Lee_WSP » Mon Aug 05, 2019 3:40 pm

I'd say it's a decent enough day to dig through the couch cushions, but if you weren't otherwise going to buy, just stick to your regularly scheduled investment schedule.

bck63
Posts: 714
Joined: Fri Sep 28, 2018 4:59 pm

Re: Buy During This Dip?

Post by bck63 » Mon Aug 05, 2019 3:50 pm

I did. Just a taste. Used a little cash. Didn't sell bonds.

guyinlaw
Posts: 119
Joined: Wed Jul 03, 2019 9:54 am

Re: Buy During This Dip?

Post by guyinlaw » Mon Aug 05, 2019 4:05 pm

The SP500 is

21% above 1 year low in Dec 18
52% above 5 year low in Feb 16

I received some funds from RE sale few months back. Bought some VTI and VXUS today.

milktoast
Posts: 85
Joined: Wed Jul 10, 2019 8:17 pm

Re: Buy During This Dip?

Post by milktoast » Mon Aug 05, 2019 4:06 pm

nisiprius wrote:
Mon Aug 05, 2019 2:45 pm

The S&P 500 closed below 1464.98, at 1,453.70, on November 9th, 2007.

In your opinion, was November 9th, 2007 (the blue dot on the chart) a good time to buy?
Depends on your timeframe. CAGR from then to today is roughly 5.7%. So sure, that was a good day to buy.

User avatar
Sandtrap
Posts: 8480
Joined: Sat Nov 26, 2016 6:32 pm
Location: Hawaii No Ka Oi , N. Arizona

Re: Buy During This Dip?

Post by Sandtrap » Mon Aug 05, 2019 4:08 pm

guyinlaw wrote:
Mon Aug 05, 2019 4:05 pm
The SP500 is

21% above 1 year low in Dec 18
52% above 5 year low in Feb 16

I received some funds from RE sale few months back. Bought some VTI and VXUS today.
Nice!
Very Nice!
j
Wiki Bogleheads Wiki: Everything You Need to Know

KlangFool
Posts: 14153
Joined: Sat Oct 11, 2008 12:35 pm

Re: Buy During This Dip?

Post by KlangFool » Mon Aug 05, 2019 4:10 pm

TLC wrote:
Mon Aug 05, 2019 3:24 pm
KlangFool wrote:
Mon Aug 05, 2019 2:20 pm
OP,

I am buying because today is my annual rebalancing day.

KlangFool
Is a Happy Birthday wish in order?
No. My annual rebalancing happened to be the first Monday of August every year.

KlangFool

User avatar
sergeant
Posts: 1242
Joined: Tue Dec 04, 2007 11:13 pm
Location: The Golden State

Re: Buy During This Dip?

Post by sergeant » Mon Aug 05, 2019 5:22 pm

Sorta. I'm retired but got a gig working for an MLB team at the start of the season. Direct deposit has my pay going to our credit union account and I had forgot about it until this weekend when I decided to transfer it to our Vanguard holdings. I did the transfer today, all into equities.
Lincoln 3 EOW! AA 40/60.

JDDS
Moderator
Posts: 1007
Joined: Sun Mar 16, 2014 2:24 pm

Re: Buy During This Dip?

Post by JDDS » Mon Aug 05, 2019 5:50 pm

My stock allocation has been a few percent short of target for a while now. I decided not to wait for regular ongoing contributions to catch it up. I bought some total US and total international today. That will get me about halfway there. If I hear the market is going down again this week I'll probably remember to buy again...if not I'll do it when the next paycheck hits mid month.

ThankYouJack
Posts: 3026
Joined: Wed Oct 08, 2014 7:27 pm

Re: Buy During This Dip?

Post by ThankYouJack » Mon Aug 05, 2019 6:46 pm

No one knows if this is the bottom of a dip or the start of a plunge. I simply buy when I have the cash to invest.

Time in the market > timing the market

WhiteMaxima
Posts: 2031
Joined: Thu May 19, 2016 5:04 pm

Re: Buy During This Dip?

Post by WhiteMaxima » Mon Aug 05, 2019 7:05 pm

Bought some.

hudson
Posts: 2049
Joined: Fri Apr 06, 2007 9:15 am

Re: Buy During This Dip?

Post by hudson » Mon Aug 05, 2019 7:14 pm

nisiprius wrote:
Mon Aug 05, 2019 2:45 pm
There are no simple, reliable rules.
Great contribution! Thanks!
The graphs tell the story.

livesoft
Posts: 68616
Joined: Thu Mar 01, 2007 8:00 pm

Re: Buy During This Dip?

Post by livesoft » Mon Aug 05, 2019 7:17 pm

rustymutt wrote:
Mon Aug 05, 2019 3:31 pm
But what if the dip continues for say, 2 years and ends up 50% down, before starting backup?
One should rebalance all the way down according to their IPS.

How would your portfolio turn out following YOUR IPS given the historical record that nisiprius showed?
Wiki This signature message sponsored by sscritic: Learn to fish.

finagle
Posts: 73
Joined: Sun Oct 30, 2016 9:33 am

Re: Buy During This Dip?

Post by finagle » Mon Aug 05, 2019 7:37 pm

Dip? What dip?

My next set point for extra unscheduled funds in is djia = 20,000.

But glad my 401k contributions are going in this week ($740, which is $19k divide by 26 checks)

User avatar
ram
Posts: 1331
Joined: Tue Jan 01, 2008 10:47 pm
Location: Midwest

Re: Buy During This Dip?

Post by ram » Mon Aug 05, 2019 8:02 pm

Hopefully. When the dip reaches -10%.
Ram

User avatar
whodidntante
Posts: 6695
Joined: Thu Jan 21, 2016 11:11 pm
Location: outside the echo chamber

Re: Buy During This Dip?

Post by whodidntante » Mon Aug 05, 2019 8:25 pm

BL wrote:
Mon Aug 05, 2019 3:12 pm
I have been wondering about all those threads about waiting for a down point. Is this it or are they afraid it will go down more? I can see never getting back in in that case.
I didn't see a whole lot of people "getting back in" during the December dump.

User avatar
nedsaid
Posts: 12777
Joined: Fri Nov 23, 2012 12:33 pm

Re: Buy During This Dip?

Post by nedsaid » Mon Aug 05, 2019 8:27 pm

No, my dry powder has already been shot. What I have has to be good enough.
A fool and his money are good for business.

RubyTuesday
Posts: 255
Joined: Fri Oct 19, 2012 11:24 am

Re: Buy During This Dip?

Post by RubyTuesday » Mon Aug 05, 2019 8:33 pm

The last few days were the first times I was able to TLH in some time. Had exchanged some funds to have more bonds overall, but resulting in buying some new foreign equity positions. Sold yesterday and then again today (well exchanged to be more accurate).

bltn
Posts: 579
Joined: Mon Feb 20, 2017 9:32 pm

Re: Buy During This Dip?

Post by bltn » Mon Aug 05, 2019 8:34 pm

I would just keep dollar cost averaging.
Loading up on stock now will probably make very little difference in your investing career.
The Wall Street guru s want you to believe otherwise.

RetiredAL
Posts: 454
Joined: Tue Jun 06, 2017 12:09 am
Location: SF Bay Area

Re: Buy During This Dip?

Post by RetiredAL » Mon Aug 05, 2019 9:01 pm

Outright buy, no.

However the annual Roth Conversion could get done early this year.

ivk5
Posts: 986
Joined: Thu Sep 22, 2016 9:05 am

Re: Buy During This Dip?

Post by ivk5 » Mon Aug 05, 2019 9:14 pm

RubyTuesday wrote:
Mon Aug 05, 2019 8:33 pm
The last few days were the first times I was able to TLH in some time. Had exchanged some funds to have more bonds overall, but resulting in buying some new foreign equity positions. Sold yesterday and then again today (well exchanged to be more accurate).
+1 TLH’d

Momus
Posts: 785
Joined: Tue Feb 21, 2012 9:23 pm

Re: Buy During This Dip?

Post by Momus » Mon Aug 05, 2019 9:19 pm

bought some.

User avatar
birdog
Posts: 293
Joined: Fri Apr 07, 2017 1:35 pm

Re: Buy During This Dip?

Post by birdog » Mon Aug 05, 2019 9:25 pm

Seasonal wrote:
Mon Aug 05, 2019 3:29 pm

If you're doing something other than pre-planned rebalancing or periodic investmenting, you should buy in the first case, but not in the second.
I’m gonna git my investmenting on too!

Hah! ;-) Had to go to urban dictionary for that one.

Beensabu
Posts: 253
Joined: Sun Aug 14, 2016 3:22 pm

Re: Buy During This Dip?

Post by Beensabu » Mon Aug 05, 2019 9:31 pm

This is not the dip you're looking for.
"The only thing that makes life possible is permanent, intolerable uncertainty; not knowing what comes next."

orhkaf
Posts: 38
Joined: Tue Feb 13, 2018 12:39 am

Re: Buy During This Dip?

Post by orhkaf » Mon Aug 05, 2019 9:44 pm

I wish I had the funds. Dumped my load prematurely last week :(

Oh well at least 401K buys tonight.

Lee_WSP
Posts: 1208
Joined: Fri Apr 19, 2019 5:15 pm
Location: Arizona

Re: Buy During This Dip?

Post by Lee_WSP » Mon Aug 05, 2019 10:17 pm

All I know is that I don't know the future. If I scrounge up some extra cash and cut back spending, will I regret it if the market dips even lower after going up a little bit?

Post Reply