Guys I saw a comment a while regarding the stock market and how stocks are declining, due the 10 year bull run in the stock market.
It got me thinking as I DCA money into the S&P 500 each month which is effectively the whole American stock exchange. As the S&P 500 prices decline, I can buy more with my monthly DCA.
As I’m a long term investor I hope for prices to recover and ultimately make money in the long run for my retirement… I am 27 now.
The question I have to anyone out there who can help is :
Why didn’t people do this in the 2008 crash? To me it seems most logical to buy on the way down, and wait for the recovery. Something like the S&P 500 can’t go to 0, nearly impossible… with a recovery likely in the future even though it could take years.
Isn’t this how you build wealth? I am talking about building a retirement pot, with hopefully compounding effect over the next 30 years.
What do you all think about this in terms of building long term wealth?