In a previous post I mentioned that I took all my money out of the stock market about 2 weeks ago. So far, that has turned out to be a pretty good decision.
However, I am now grappling with trying to figure out what the ultimate strategy for buying back into the market is.
I’d have to think someone has written a book about this but I’m not sure who I should be reading.
Anyway, here’s a simple sample strategy I came up with which I wanted to share and also get other investor’s opinions on.
-5%… reinvest 10%
-10%… reinvest 10%
-15%… reinvest 10%
-20%… reinvest 10%
-25%… reinvest 10%
-30%… reinvest 10%
-35%… reinvest 10%
-40%… reinvest 10%
-45%… reinvest 10%
-50%… reinvest 10%
The caveat to the above strategy obviously is if the economic condition changes significantly in a positive way, I might make the decision to throw all of the remainder back in immediately.
What do you think?