October 6, 2022
By Scott Wohlers
No one rings a bell at the bottom. It sneaks up on most investors. Because of past volatility, doubts are expressed long after the bottom has been made. Not until well after the fact, do most acknowledge that the bottom is in. That is why smart investors scale into positions. Call it dollar cost averaging or whatever, it simply acknowledges the difficulty of buying at the absolute low. If it happens, it is usually just luck and not a repeatable strategy.
When is the right time to start scaling? The answer is when, through analysis, an investor strongly believes they are getting a bargain. Subsequent purchases may be at a better or worse price. If it is still a good buy, so what? Investing, by its nature, is all about being optimistic for future success. Accept that the near term will always be a blur and look out beyond that.
In today’s stock market, opportunities are plentiful. Buy some. Upgrade holdings whenever possible. Book some losses and put the cash back to work in an equivalent or better stock. If you can’t do that, then don’t do anything, just sit there. Bottoms come and bear markets pass; stay steady my friends.
The Lonely Bull
