Buy now?

Buy low and sell high always works.

The problem is how to define low and high. Here is how I define and could be very different from yours.

For low. Judging from the economic conditions, I put the worst bottom at 50% down (for recession) and 10% down (for correction) from our recent peak. If you believe you're 50% right in each scenario, start buy the good stocks at 10% less and some stocks at 50% less from their peak prices in equal amounts of your cash that you should have accumulated if you saw the correction was coming in late April.

Over-simplified for discussion. I have more orders at 15% off and so far none for 50% off as the chance of going to 50% is quite slim. At that time I would borrow money to buy stocks.

Again, market timing is not a science. The market could return to the peak tomorrow and I would lose all the buying opportunities and it could go to 75% down - then I would still lose a lot if I bought stocks at 50% discount. 

-------

(c) TonyP4 2012. Written in 5/21/12. Last updated in 5/21/12.

Disclaimer:

Do not gamble your money you cannot afford to lose. Past performance is a guideline and does not guarantee future performance.

All my posts are for informational purposes only. I'm not a professional investment counselor. Seek one before you make any investment decision.