Stock Market crash 2022

Patsy167

Would now be a good time to invest in the S&P index or is the market expected to dip further in 2022?

Atlantic Dawn

You would have to consult a crystal ball, nobody knows.

If you thought a company was good value and trading well 2 months ago when it was 20-30% more expensive, why would you not think it wasn't great value now? It's easy to start throwing money on something going up every month.

massdebater

https://www.boards.ie/discussion/2058229347/stock-market-crash-2022

No one knows when the market will go up or down. Best to DCA in, so buy some now, and have regular intervals to buy more (one per week/month/quarter etc). Remember to DCA out again when taking profits. Good luck!

patsy_mccabe

As Warren Buffett says - "The stock market is the only store in town, where everybody rushes out, when there is a sale on".

arthursway

https://www.boards.ie/discussion/comment/118527040#Comment_118527040

Great quote. Of course having the capital to invest when the sale is on is the problem.

bob mcbob

This is a pretty hard hitting analysis of why this is happening now and how bad things could get. It is mainly about inflation.

• Long term market and inflation trends indicate lower asset prices as inflationary forces skew the GDP compensation share back toward labor and away from asset owners.
• Record margin debt and credit card debt combined with low investor cash allocations and reduced personal savings indicate negative retail investor liquidity flows.
• Weak consumer and business sentiment, falling real incomes, poor Q4 bank earnings, rising initial claims, and China's economic issues point toward an economic downturn.
• Since supply-side factors support inflation, investors should not expect the Federal Reserve to bail them out again - meaning it could take decades for the stock market to recover if it crashes.

https://seekingalpha.com/article/4480883-the-stock-market-crash-is-likely-only-beginning

jon1981

https://www.boards.ie/discussion/comment/118517856#Comment_118517856

What's the DCA out again thinking? I would think you'd be holding for a 5-10 year period if you're DCA into ETFs...to smooth out the dips ?

massdebater

https://www.boards.ie/discussion/comment/118556737#Comment_118556737

To help you build spare cash to invest during dips. Some prefer to just hold the whole way and that's fair enough too.