Well, the S&P500 dropped again by a decent amount today: 1.42%. And the NASDAQ fell a little more at 1.84%. The drops were seemingly kicked off by Facebook’s inability to weather security issues – particularly those related to data exploitation and the 2016 election. Unless there’s a big pop tomorrow, it seems like an opportune time to buy.
I sent a $3,900 Roth IRA contribution to Vanguard, and while that will miss today’s drop, I’ve invested an idle $500 in my HSA today. It’s one of the four tactics to take advantage of market dips – whether you have idle cash or don’t have idle cash – outlined in this post: Turning Market Sad Faces Image may be NSFW.
Clik here to view.
Into Market Happy Faces :D.
Here are some guidelines I follow when the market falls for the day:
- <1% drop: Business as usual Image may be NSFW.
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- 1-2% drop: Time to shovel in some moneyImage may be NSFW.
Clik here to view. - 2-5% drop: Bring out the the wheelbarrow of cash Image may be NSFW.
Clik here to view. Image may be NSFW.
Clik here to view.Image may be NSFW.
Clik here to view. - 5-10% drop: Back up the dump trucks and unload that money Image may be NSFW.
Clik here to view.Image may be NSFW.
Clik here to view.Image may be NSFW.
Clik here to view. - >10% drop: TAKE COVER! Image may be NSFW.
Clik here to view.Image may be NSFW.
Clik here to view.Image may be NSFW.
Clik here to view.Image may be NSFW.
Clik here to view.
Of course these aren’t hard rules. But you do want to take advantage of the drops. Very few market drops happen outside of -1% in the normal course of the market. It’s hard to invest when the market’s dropping but investing when the market’s down will help you prepare to invest during bigger market crashes!
Are you exploiting these market dips in similar or other ways?
