Stocks Off Sharply as Market Upheaval Grows

Re:Stocks Off Sharply as Market Upheaval Grows by vasilipupkin on Monday August 24, 2015 @01:11PM (#10111364)

I just want to offer everyone a professional piece of advice. Large down moves in equity markets is exactly when you should buy equities because that's when expected returns are at their highest.

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Re:Stocks Off Sharply as Market Upheaval Grows by adt2bt on Monday August 24, 2015 @03:51PM (#10112543)

This got me thinking - is it possible to develop a profitable long-term investment strategy that takes advantage of stock market dips?

For example, say I have $1000 to invest every month. I'll take that $1000 and put $500 into an index fund and $500 into a savings account. Then, once the market dips 10% from its previous high, all the accumulated money in the savings accounts is invested over 4 weeks.

I made a simple google doc to back-test the strategy 5 years on the DJIA. It's very rudimentary, but I'd love to see if anyone tries a different approach.

https://docs.google.com/spreadsheets/d/18-2rBonJPPlg8n6YkpAj...

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Re:Stocks Off Sharply as Market Upheaval Grows by 001sky on Monday August 24, 2015 @04:56PM (#10112878)

testing (a) trading strategy in a short window ... why?

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Re:Stocks Off Sharply as Market Upheaval Grows by adt2bt on Monday August 24, 2015 @06:14PM (#10113208)

It was a first stab in 15 minutes this morning between meetings. What would you do differently? I'm all ears (trying to learn here, too)!

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Re:Stocks Off Sharply as Market Upheaval Grows by swagswag on Monday August 24, 2015 @01:26PM (#10111495)

Large down moves Thursday, Friday, and now (early) today.

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Re:Stocks Off Sharply as Market Upheaval Grows by debacle on Monday August 24, 2015 @02:07PM (#10111817)

I'll counter with some amateur advice - things still seem historically overpriced.

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Re:Stocks Off Sharply as Market Upheaval Grows by vasilipupkin on Monday August 24, 2015 @04:10PM (#10112660)

stocks are not obviously cheap, I'll give you that. But you have to compare them to other investment alternatives. Cash, Real Estate, Govt Bonds.

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