They say, “a stitch in time, saves nine,” but sometimes waiting to do something pays off even bigger. In investing, it’s a bit of luck.
My broker had been calling over the last 8 weeks to ask what we wanted to do with a big chunk of cash that came our way through a real estate sale. I’m lucky I didn’t decide what to do with the money until now since the stock market has fallen 8 straight weeks in a row!
I called him back on Friday, figuring that the market has to be close to done with this Bear streak. The S&P 500 hasn’t fallen 8 weeks in a row since 1932, according to the Wall Street Journal. I know we have recession fears, oil fears, and inflation fears, but at some point, “all hope is lost,” and the market has to turn back to positive territory.
I know you can’t regularly time the market, but it sure feels nice when you do. I timed the pandemic market bottom almost perfectly on St. Patrick’s Day 2020, so maybe I’ll get lucky again this time.
I would have lost tens of thousands of dollars had I been prompt in getting our cash reinvested when we got it two months ago. The market is down nearly -20% since then.
Now I’ve asked him to push our extra cash into some high-dividend index funds within the S&P 500. Regular reader and Dividend King, KlausWetzel, will surely approve of that move! We’ll find out in the coming weeks & months if my timing was good.
We don’t have plans to spend the money for 3-5 years, so I think it’s the right call. Hopefully it will be hard to even recall the early 2022 market downturn in 3-5 years!
Do you think the current stock market malaise has reached bottom, or is close? Or, will go much lower than it is right now?
Image Credit: Pixabay