2D·

If you only believe in momentum to a limited extent and are absolutely convinced of mean reversion, when should you set up savings plans on individual stocks?

Already at a plus of 3% or only at 5% or more?

What do the wise among you say?

I know your DCA thesis, but I'll tell you what you already know: It will go down again.

I'd rather suspend the savings plans, build up cash again and wait until it crashes again, when I can make individual purchases or set up savings plans again.

Another question that has nothing to do with this article. Why is $GIS (+0,19 %) going so badly? Have we already seen the low point?

7 Comentarios

Uwe@SchlaubiSchlumpf

In addition to mean reversion, there is also the random walk. Nobody knows whether mean reversion will come today, tomorrow or in 5 years' time. It could be even worse. If you make consistently poor returns over the next 5 years, you will also have mean reversion and still miss out on returns. Or even more extreme: the market continues to make average returns on average and the current overvaluation becomes the new benchmark. Do I believe that? Nope. Could it happen? Definitely. But I don't want to take the risk of not finding the right entry point for several years.

•

Nick@Nick-investing

Make sure you don't fall out of a window. It's said to happen more often in Russia.

•

value_seeker_@value_seeker_

There was once a really great article here - unfortunately I can't find it right now - that regular savings beat "dip" purchases in terms of returns.

•

GerdaKommer🦛@_Hippo_

@value_seeker_ What a pity, I would have been very interested. Who do you think was the author? Maybe @DonkeyInvestor knows more? 🥹

••

Pope Donkey XXI@DonkeyInvestor

@_Hippo_ nope, I don't know anything

•

bull_investor_1998@bull_investor_1998

@value_seeker_ I find it hard to imagine I have always bought from dip. Finding the right time is almost impossible, as mentioned in some previous posts. The term dip is totally relative, it's always just a snapshot.
I therefore think that I am now also working with a savings plan

••

GerdaKommer🦛@_Hippo_

@Savvy_investor_2000

••