The market has been imploding, yet I’m still buying. I’ve been buying. I’ll keep buying. Why?
I believe timing the market is one of the hardest things to do in investing. Time causes chaos. Out of nowhere, you don’t know what crazy event will happen (COVID, Russia invading Ukraine, etc..). Yet, that doesn’t even begin to explain how tough it is to time the market. Not only do you need to worry about the unknown, but you also need to understand the psychology of the market. From Gamestop to shit coins to Nikola to Peloton (yeah, I’m a dumby too), the psychology of the market is drunk.
Once you accept that timing the market is hard and that Mr. Market is a bit of a psycho, dollar cost averaging is the simple answer. Whether up or down, you just buy.
This by no means is an excuse to ignore poor performance. I need to be honest with myself about whether my investments are working out. I’ll be patient, but being a stock picker is hard. I’ll be constantly evaluating my progress and evolving my investing style. I may not know what I will be buying, but I do know that I will be buying. Maybe it’s individual stocks or maybe it’s index funds. I don’t know what it will be, but either way I’ll be buying.