I have to laugh. I'm just getting into investing and I put 50% of my net worth in over the last few weeks. Half about a week ago and half yesterday because I figured "Hmm, looks like it is starting to bottom out".
FAIL - I guess this is why they say don't try to call bottoms.
My plan - keep putting money in. I'm young and holding for the long term, this is a great buying opportunity no matter what happens today, or monday, or 6 months from now.
For me specifically, I'm socking a lot of money away in a retirement account to make up for the fact that when I start my company, I won't be making many contributions until I start making money.
Having money working for you even when you are not working helps reduce the risk of starting a company.
I respectfully disagree with the other posters here. I feel that you need to judge each and every investments on its merits. The market does not move exactly in lockstep. When Goldman Sachs was at 85, it was an effing steal. I would still invest in it today if I had the money, but I wouldn't totally pounce on it.
As for timing the bottom, yea that's kinda hard. I would watch more experienced players call it cough Buffett cough, instead of listening to random people (yes I know, random ppl like me) on the internetz. ;)
I doubt the bottom will come till next year my friend, so buy incrementally. And I feel the Christmas season will be a fluke of optimism, however the news media may spin in into a the Nightmare Before Christmas... markets are random, probably better off investing in yourself at this point.
I think you have the right plan, the only thing I would change is big moves like 50% in a few weeks.
Go slow, then you don't have to worry about picking bottoms.
You should spread your risk out with even increments of investments every month for the next 2 years. Since you're young, this is an excellent time to invest because you're definitely getting a bargain in the long run.
I am doing the same thing. I increased my monthly 401(k) contributions and am holding for the long term - 30 years or so I guess. Hopefully we will have recovered by then ;)
If you're going to be putting money to work, at least sell puts. You can catch an extra couple percentage points and will give you an edge in the long term.
FAIL - I guess this is why they say don't try to call bottoms.
My plan - keep putting money in. I'm young and holding for the long term, this is a great buying opportunity no matter what happens today, or monday, or 6 months from now.
For me specifically, I'm socking a lot of money away in a retirement account to make up for the fact that when I start my company, I won't be making many contributions until I start making money.
Having money working for you even when you are not working helps reduce the risk of starting a company.