Post #157 by rayvt on the Index Investing board

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Investment Strategies / Index Investing

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I invest more in the broad market whenever there’s a steep drop.
...
I simply take my cues from the magnitude of the market’s decline, and the bigger it is, the more enthusiastic I am about buying.

All well and good, but where does the money for that big buying come from?

Presumably you've got a pot of money that is not invested in stocks but is sitting in savings accounts or bonds.
Which means that it is missing out on the stock gains while the market is going up.

That is going to severely hurt your overall portfolio.

Then there is the question of when to sell stocks and rebuild your cash for the next downturn.

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