For it to work as intended, you can't stop
buying during a market downturn.
Not exact matches
For instance,
during the U.S stock
market downturn of 2007 through 2009, many emotion - influenced investors fled the stock
market leading to bargain
buys for savvier investors.
What about borrowing money to
buy even more units in an equity fund while they are «on sale»
during stock
market downturns?
With «dollar cost averaging» you automatically
buy more mutual fund units
during stock
market downturns and fewer units when stock prices rise.
It gives me some peace of mind,
during market downturns, to know that I'm
buying «more» shares for the same monthly investment.
Tip: If you're the kind of investor who
buys and holds through a full cycle, remember that active funds may lag
during bull
markets, but make up the difference
during market downturns.
One study looked at the
market for condos in Boston
during a time of economic
downturn and compared the pricing behaviors of real estate agents and owners of similar units who
bought their condos at different prices.